August 24, 2010
Irish High Court reserves judgement on dioxin-contaminated feed
The High Court in Ireland has not made its final decision on whether to approve a scheme of arrangement between a Co Wexford company alleged to have supplied feed containing harmful dioxins and those suing the company.
Millstream Recycling Ltd has asked the Court to approve a scheme with more than 25 creditors who have brought actions against the firm over being supplied with contaminated feed. The company claims that it faces going into liquidation if the scheme is not approved.
The contamination, in December 2008, resulted in a recall of all Irish pork products after pig meat on a number of farms was found to have had between 80 and 200 times more dioxins that the recognised safety limit.
The proceedings against Millstream, Recycling Ltd, Clohamon Mills, Bunclody arose after dioxins such as polychlorinated byphenyls (PCBs) were detected in the biscuit feed meal its client makes for pigs and cattle.
Through no fault of Millstream, the PCBs were contained in oil Millstream had purchased to use in the feed manufacturing. Millstream had not tested the feed for PCBs because these had been banned in the 1970''s and do not occur naturally.
Justice Mary Laffoy reserved judgment following the conclusion of submissions from those in favour and parties against the scheme being approved. The judge said she would give her decision as soon as she could, and hopes to be in a position to give judgement on September 10 next.
Under the terms of the scheme, it is proposed that Millstream would pay out a total of EUR6.5 million (US$8.3 million), which is the maximum the company was insured for. The total value of the claims Millstream was facing from those included in the scheme arising out of the contamination is EUR32.9 million (US$41.8 million).