“The failure of Irish Life to engage with me as liquidator regarding the transfer of the pension fund [is] resulting in deprivation of funds in the liquidation going forward,” said liquidator and insolvency expert PJ Lynch in the filing.
The successful conclusion of the liquidation – which began in 2014 – had been delayed by an “ongoing criminal investigation by the Garda National Economic Crime Unit”.
When the fruit-and-vegetable wholesaler, which once had a turnover of €40m, was placed in voluntary liquidation, it owed more than €2m to creditors.
The update stated that unsecured creditors total over €1.4m and that secured creditors, believed to be the Revenue Commissioners, are owed over €87,000.
Asked to comment, Lynch said he was unable to bring the liquidation to its conclusion because of the impasse over the pension.
As part of his investigation, Lynch had identified a €239,000 pension fund related to Swan Fruits
“In my long experience as a liquidator I have never encountered a case to go on so long,” he said.
Lynch was appointed as liquidator in April 2016 and began an in-depth investigation to track down money to repay creditors.
“The actions of the Directors, John Swan, Niall Swan and Alex Swan deprived creditors, both preferential and unsecured, of monies due to them,” said Lynch in his update, filed last week, “due to their fraudulent, reckless trading and a total lack of their fiduciary duties as directors of the Company”.
In July 2024, the High Court approved Lynch’s application for a five-year disqualification on holding-company directorships against John Swan, the former owner of the firm, as well as restriction orders against Swan’s sons, Alex and Niall.
As part of his investigation, Lynch had identified a €239,000 pension fund related to Swan Fruits. At the July 2024 hearing, the High Court ordered Irish Life to transfer the proceeds of the pension fund, and the former director of the firm had signed an order agreeing to this transfer at that time.
A spokesman for Irish Life said that it had no comment to make on the matter.
The insurance firm is understood to dispute the claim that it has not engaged with the liquidator. It has previously argued that because pension plans are constituted as trusts that this acts as an impediment.
Irish Life is also understood to believe that such a payment may breach tax legislation on the treatment of pension funds and that it is for the liquidator to deal with Revenue on the matter. The liquidator, however, has argued that tax law clearly states that it is the provider of the pension fund who should take advice from the Revenue Commissioners.