Tuesday, November 15, 2011

Magma - The last chapter?

Magma European Scripting House Ltd (MESH), trading as Magma Films, is listed for strike off with most of the creditors no wiser than they were back in March when the company's difficulties (and liabilities) were made known. As to the fate of the monies owed to creditors - including the Revenue, Anglo Irish Bank, and Galway City Council - your guess is as good as mine.

From the Company Registration Office:
Type Company
Number 239014
Registered 04/10/1995
Status Strike Off Listed
Effective date: 13/11/2011
Last AR Date 30/09/2009
Next AR Date 30/09/2010
Last Accounts to Date 31/12/2008

Magma Films is a business name of MESH so presumably its fate will be determined along with that of the company. Both names still give a registered address at Merchants Road, Galway although no part of the business has been at that address for some time.

Meanwhile, to add to the confusion, a new business name, Magma Productions, was registered in September. Regular readers will recall that Magma Productions Ltd changed its name to Tidal Films Ltd earlier this year.

Type Business Name
Number 449400
Registered 21/09/2011
Status Normal
Effective date: 21/09/2011

Previous Magma posts -
Magma - Section 481
Keeping company...
Dear Ralph...
Ralph replies...
Assets, Rights & Responsibilities
The Magma Saga - ep #5...

(and some more info in the comments below)


Anonymous said...

What is happening with Jack Taylor. Is it still going ahead this year? I hear that the IFB has pulled funding. Is there any truth to this?

irish film portal said...

As far as I am aware it is shooting - in Galway and Bremen, with Irish backing from Section 481and TV3, and German regional fund and broadcaster backing. I don't think the IFB ever offered to support the project.

It is a co-production between Taylormade Films Ltd, Mayoralty House, Galway (Regd. 27/10/2011), and Molten Rock Gmbh, Bremen.

Taylormade Films may be a typical Special Purpose Vehicle company set up to avail of Section 481. The background of Molten Rock is outlined in earlier posts on the Magma situation.

A further company, Taylormade Stories Ltd, was registered last week at the same address.

Anonymous said...

I have done a bit of research on this strike off and discovered the following. The directors of a company may be tempted to believe that once a company is struck off by CRO that they do not have to deal with the liabilities of the company. Such a perception can be costly for the directors.
If a company becomes insolvent, the directors are obligated to place the company into liquidation and convene a creditors meeting. If a creditors meeting is convened, then the creditors are given the opportunity of having their queries answered, and of closing their files on the matter.
If the company does not go into liquidation, but is struck off, then we creditors can apply to have the company restored and to appoint a liquidator through the High Court but only the big boys can afford that.
Directors should also note that they will automatically be targeted by CRO for individual prosecution as a result of their failure to file returns. I understand this is done through the office of the Director of Corporate Enforcement.

According to the Revenue website (www.revenue.ie)strike off has the following implications: "The consequences of strike-off/dissolution for a company are serious and these include:

1. It ceases to exist as a legal person,

2. If it continues to trade, its shareholders and officers are trading without the protection of limited liability,

3 The assets of the company are vested in the MINISTER FOR FINANCE and are therefore the property of the state by virtue of Section 28 of the State Property Act, 1954.

So we now have to go to Michael Noonan to get paid for the work done for Magma.

irish film portal said...

I understand that the company has been restored to 'normal' status pending legal action initiated by some creditors.

It would be interesting to know what monies are owed to Magma Films by other companies, such as Ulysses Music Publishing Ltd, with which it shared an address and a director.

The 2010 accounts for Ulysses, dated 09 Nov 2011, show an amount of €19,014 due to Magma European Scripting House at year end.

irish film portal said...

I have been asked if there is any further update on the production that shot locations in Galway and has since moved to Bremen.

I have not heard if all crew or service providers have been fully paid up to date.

It goes without saying that crew or service providers should never have to cashflow a production.

In any instance where a project is funded by an Irish broadcaster, the Film Board and/or Section 481 I would recommend anyone owed money to write formally and immediately to the relevant body (the Revenue in the case of S481) to notify them that payment remains outstanding.

The matter of spend in the Irish economy is critical to the policy underpinning public funding for the sector. It is one thing to provide a budget to the authorities outlining Irish spend, it quite is another to actually pay people the amounts set out in the budget.

Only when full disclosure is made under every category of Irish spend by Irish producers and funders (including the Revenue)will we know if the policy is fully justfied by the outcome.