A marine biotech company has sought High Court protection from its creditors while finalising a rescue plan.

As The Irish Times reports, the application was made by Bio Marine Ingredients Ireland Ltd, a company based in Castleblaney, Co Monaghan, employing eight staff.

The company, which has been majority-owned by Killybegs fishermen, began production of soluble and insoluble proteins and marine minerals in 2018. It reported last year that it had moved into nutraceuticals and infant health.

The newspaper reports that the firm got into difficulty due to factors including “higher than expected research and development costs, potential customers taking longer than expected to accept its products, and the underperformance of a contract with a Korean supplier due to the impact of Covid-19”.

The firm entered the Small Company Administrative Rescue Process (SCARP), which is designed to help insolvent smaller businesses to reorganise in a cost-effective way.

Unlike the examinership process, companies that enter the SCARP do not automatically obtain protection from their creditors while it is underway, the court heard.

The company has asked the court to put a temporary halt on all legal actions brought against it by its creditors.

The court heard that creditors, who between them claim they are owed more than €400,000 by the firm, include its landlord Americold Ltd, Bord Gáis Energy and various service providers.

The court heard that insolvency practitioner Declan de Lacy has been appointed as the company’s process adviser, and he has found that the company has a good prospect of survival. Sales volumes are expected to increase with several major new customers, and additional investment has been secured.

The matter is due to return before the High Court.

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#MarineScience - The Marine Biotechnology ERA-NET (ERA-MBT) partners, a consortium of 19 national funding bodies from 13 European countries, met at the Marine Institute in Galway last week from 3-4 September to co-ordinate a collective approach to funding trans-national marine biotechnology research and innovation projects.

Marine biotechnology research involves the use of marine bio-resources including fish, algae, bacteria and marine invertebrates, either as the source or the target of biotechnology applications.

Our oceans are home to an abundance of marine bio-resources that can be used in food, chemicals, industrial materials and the health sectors. Marine biotechnology can help to unlock the potential of marine bio-resources as well as enable the production of an array of new products such as novel food sources, pharmaceuticals, fertilisers and cosmetics.

“The new collaborations to be supported by the ERA-MBT project will see academic and industry researchers working on innovative products and processes that will contribute to the development of sustainable food sources; improving our health; as well as helping to address marine related environmental issues,” said Dr Dermot Hurst, representing the Marine Institute.

Dr Hurst is responsible for defining the strategy of how the ERANET will enable new research and innovation and the creation of new approaches to transnational funding for marine biotechnology research and innovation activities.

“The ERA-MBT project is directly relevant to and supportive of Ireland’s Harnessing Our Ocean Wealth national strategy which identified the development of marine bio-resources as one of a number of new and emerging opportunities,” he said.

Major tasks completed during the Galway meeting included finalising the structure and content of the first call for research proposals from the ERA-MBT and plans for a major stakeholder workshop to be held in Lisbon on the 28-29 October. More information on the project can be found at www.marinebiotech.eu.