An interim examiner was appointed to Irish DVD rental company Xtravision today after it sought protection from the courts from its creditors due to not being able to pay its debts as a result of cash flow difficulties.
Mr Justice Patrick McCarthy appointed Mr David Hughes from Ernst & Young as interim examiner after an independent report showed the company had prospect of survival.
Xtra-Vision’s downfall is blamed on a number of factors including falling revenues and the withdrawal of coverage by two providers of trade credit insurance. Speaking on behalf of the company Rossa Fanning said despite current difficulties the directors believe the company is a viable business, with figures showing the majority of Xtravision stores to be profitable.
The matter will be returned to later this month when courts return from their Easter holiday.