In his preliminary investigation into the company’s affairs, Mr Healy found that Altada lost an average of almost €867,000 per month in the first seven months of last year before eventually collapsing. In a 39-page affidavit filed in the High Court last month, the liquidator said the company’s deficit to its creditors at the end of last year may “substantially exceed” €10 million. But when the creditor deficit is added to the €11.
Now, in an affidavit filed this week, the liquidator – who said he has now been granted access to “the full email accounts of the company, including the directors” – outlined correspondence between Altada’s “chief” intellectual property counsel and its directors from August 2022. They were told that the terms of the loan “are clearly exorbitant and punishing”. The High Court heard previously that the €500,000 loan was granted over eight months with an additional “premium” of €500,000 to be paid on top of the principal at the end of the eight-month period, an arrangement Mr Justice Brian Cregan described as “most unusual”.
The email goes on: “If you proceed without consent you do so on risk to Altada and yourselves as directors (eg Altada sued for breach of contract, action for shareholder oppression, personal liability to each of you as directors of the company for your debt.”