Survival proposals for health and pharmacy firms approved by High Court

BOFH Holdings, trading as Health Express Pharmacy, Median Healthcare and Brady’s Pharmacy, was granted court protection due to financial difficulties last March when Neil Hughes of Baker Tilly was appointed examiner. 

 

An independent expert believed the companies had a reasonable prospect of survival if certain conditions were satisfied, including securing new investment and the introduction of cost-saving measures and general overhead costs. 

 

Under a modified scheme of arrangement approved by Mr Justice David Barniville on Thursday, a number of measures are to be implemented including a Lloyds Pharmacy investment of €972,000 in BOFH and €1 million in Median, and €150,000 by DBDC Eight Ltd in Brady’s. 

 

The court heard creditors, including AIB, Revenue, Everyday Finance and the Health Service Executive were neutral as to the survival proposals. 

 

Mr Justice Barniville, noting it meant the firms could continue to trade and ensure the jobs of 79, was satisfied to approve the scheme. He said the only difficulty was that the Competition and Consumer Protection Commission (CCPC) also has to approve the scheme in relation to BOFH and Median, though not Brady’s. 

 

While it is anticipated this approval will be forthcoming, the judge agreed with a suggestion from Gary McCarthy SC, for the examiner, that the survival scheme would come into effect 21 days from Thursday, or from when the CCPC grants approval, or which ever is sooner. 

 

Court protection for these two companies would remain until then while the survival scheme in relation to Brady’s would take effect from Thursday.