Creditors face payment struggle following Welsh meat processor collapse

Dozens of livestock farmers and other businesses are unlikely to recoup cash they are owed by a failed Welsh meat processor unless the liquidator can recover a six-figure debt from an Irish firm.

Emcol 2008 Ltd had been trading at Haverfordwest until January 2016 when it was voluntarily wound up.

It has since emerged during the subsequent investigation into the company’s financial affairs that it is owed £466,798 by one of its former customers, Donal D’Arcy, trading as Darcy Meats.

See also: Wellgrain collapse highlights need for vigilance

Liquidator Gary Stones said in his recently published liquidator’s report that attempts had been made to recover the debt, with solicitors instructed to pursue the company for payment.

“Any distribution to preferential and non-preferential unsecured creditors is totally dependent on the collection of the Irish book debt and the extent realised therefrom, and also the costs of the liquidation,” Mr Stones said.

There are 233 non-preferential unsecured creditors, including many farmers, with claims totalling £706,531; one farmer is owed £107,445.

Since the company’s collapse, 67 of these creditors have submitted claims amounting to £372,806.

“I have not received claims from 167 creditors with original estimated claims in the statement of affairs of £358,991,” Mr Stones reported.

Lost contract

As well as the debt owed by Darcy Meats, the directors blamed Emcol’s failure on the loss of a Defra contract for TB cattle. They also admitted the company had been overstaffed for a long period of time.

A number of farmers had ceased trading with the company because they had not been paid on time.

“The liquidation will remain open until the matter relating to the Irish debt has been fully resolved, the timescale of which I am unable to estimate,” said Mr Stones.