Shock revelation comes as fresh blow to creditors already set to lose millions in the liquidation process
The shock revelation emerged last Friday during a tense creditors’ meeting when Des Gibney of McAleer Gibney Chartered Accountants was appointed liquidator of Nephin Whiskey Company Ltd.
Gibney expressed surprise at some of the issues that came to light about Nephin during the meeting.
The Co Mayo business was founded in 2013 by husband and wife Paul and Jude Davis (pictured) and Mark Quick
Creditors of Nephin claim to be owed almost €3.1m in total, meaning painful losses for many who poured their savings into the venture. These include small-time backers who invested in casks of yet-to-be-produced Nephin whiskey for €6,500 each.
Many distilleries across Ireland have launched cask investment programmes hoping to raise capital for their development. Some schemes launch before a distillery is producing whiskey, with Nephin’s liquidation and the sector’s wider troubles highlighting the risk taken by investors.
The Co Mayo business, founded in 2013 by husband and wife Paul and Jude Davis and Mark Quick, raised over €6m between equity funding and loans to develop the first new distillery in Connacht for 100 years. Despite high hopes, Nephin became beset with long delays and boardroom battles.
The distillery was never completed.
Nephin’s statement of affairs estimated the book value of plant and machinery at the distillery was €2.98m, based on valuations in the company’s accounts for 2021.
It did not estimate how much could be realised by the machinery, as directors felt unable to do so accurately due to its specialised nature.
Creditors questioned the value attributed to the equipment.
A lawyer asked by Nephin to advise on the conduct of the meeting shared how sheriffs from Revenue had seized some items from the distillery back in early 2023. This may mean the valuation in the statement of affairs is actually lower.
The Revenue seizure shocked those present. The document estimated a surplus of €500 applicable to secured creditors, who are owed €1.5m.
Paul Davis, a director of Nephin when the seizure happened, told the Sunday Independent this was a “standard company enforcement procedure” and related to historic tax liabilities.
The Nephin Distillery was launched in 2014 by then Taoiseach Enda Kenny (centre)
The ownership of Nephin has been shrouded in mystery for years.
During the creditors’ meeting, it was alleged one of the owners was lawyer Bruno Herbots. An entirely separate investment fund linked to another businessman was also named.
In a statement, Davis claimed there are “ongoing disputes and formal processes” concerning the share ownership at Nephin. He alleged there are matters currently before the Tax Appeals Commission.
“I can only say that I have seen no documentation to support some of the claims made at the creditors’ meeting,” he said.
Paul and Jude Davis were no longer directors of Nephin after an AGM in early 2024. They were replaced by Tamara Antonova (72) and Halyna Matiyash (75), two Ukrainian nationals living in Co Dublin.
Antonova, who chaired the creditors’ meeting, claimed she did not think being appointed a director of Nephin was strange due to her business background. Speaking through a translator, she claimed to have been the managing director of a philharmonic school with 1,000 students.
Gibney declined to comment when contacted by the Sunday Independent.
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