Irish Car Rentals Ltd Board of Directors Prepared to Leave

What appears to be a complete clean out of the board of directors, Irish Car Rentals Ltd has sought the board stepping down as a condition of investment in the court protected company. The board members of the company said that they were prepared to resign in the interest of the survival of the company.

Right now Irish Car Rentals Ltd employs some 160 people. The executive directors have also agreed to resign. They will be doing so without any kind of compensation for the loss. Once again, they are doing so for the survival of the company.

This matter came before Mr Justice Frank Clarke late last week. He said that interested investors wanted to clear out the board. If there was going to be a dispute about that, it had the potential to affect the proposed schemes of arrangement for the companies’ survival.

The judge had previously voiced some concerns arising from a forensic accountant’s report by Grant Thornton. This report revealed, what the judge described as a hole of five to six million in the accounts. Counsel for one of the directors, John Culleton, said that his client rejected any allegations against him but was prepared to resign in the interest of the company. The judge did hear that all of the current board of directors for Irish Car Rentals was prepared to resign.

The court had granted protection to Irish Car Rentals Ltd and six related companies on February 8^th. Like so many other companies in the travel industry, this one had run into some financial problems that it could not seem to get out of.