The High Court has appointed a provisional liquidator to a Co Galway automation equipment firm that ran into financial difficulty following a customer’s cancellation of a major contract.

Mr Justice Oisín Quinn on Friday appointed liquidator David van Dessel to Megadale Ltd, with offices at Briarhill Business Park, Ballybrit, following a petition moved on behalf of the company itself.

According to its court documents, Megadale began to experience major financial difficulties in May 2024, when an order worth €8.5 million to the company was delayed by the customer, a multinational medical devices firm.

Megadale received assurances that the delay was temporary, and was asked not to take on additional orders so as to maintain the capacity to ultimately fulfil the contract.

In December 2024, however, Megadale was informed by the customer that it was cancelling the order. Megadale says that it did not receive a detailed explanation for the cancellation.

Barrister Ross Gorman, appearing for Megadale and instructed by solicitor Graham Kenny, told Mr Justice Quinn the cancellation was “essentially devastating” for the company.

Megadale’s petition states the company was running at a loss between May and December 2024 as it had insufficient work for its employees. The company currently employs 23 people.

Following the cancellation of the order, the company attempted to backfill its depleted order book, according to the petition.

This proved extremely difficult, the company says, as many of its customers “had paused their own spending due to uncertainties caused by the new administration in the US”. The impact of President Donald Trump’s tariffs – both actual and threatened – had the effect of contracting the automation market in Ireland and Europe, the company says.

The recent cancellation of other projects has contributed to the company suffering significant financial losses in the last 2½ years. Attempts to procure investment in the company also proved to be fruitless, the firm says.

At present, two companies are interested in acquiring the assets of the company, including employees and the firm’s property, according to the petition.

Mr Justice Quinn said he was satisfied to make the order appointing Mr van Dessel, noting that the company was insolvent. He said the company had enjoyed a successful period, but a number of “unlucky” events ensued, noting the cancellation of the €8.5 million contract.

The judge adjourned the case to next month.