The Sunday Business Post April 2, 2017 The Siege of 15 3-page special report

For more than six months, a battle has raged inside and outside the courts over the future of a small slaughterhouse in Co . Toxic debts linked to one business have led to allegations of threats of violence, jobs on the line, and the ongoing occupation of an abattoir that the state seems powerless to stop. But where will it end? This is the inside story of . . . THE SIEGE OF LIFFORD

By Jack Horgan-Jones denmore Farm Meats is at the bloodiest end of an already bloody industry. Inside the walls of this small factory in Lifford, Co Donegal, cattle are destroyed, skinned, disembowelled and boned. Then they are sent to butchers around the country, and further afield. It has been that way Eat Edenmore for almost 20 years. It is a good plant: the cattle are treated humanely, according to industry standards. At its peak, up to 500 farmers a month would send cattle to the plant for slaughter. to page 16 The Sunday Business Post The Sunday Business Post 16 The Siege of Lifford April 2, 2017 April 2, 2017 The Siege of Lifford 17 The longer their place stays closed, the ‘‘harder it is . . . people find other outlets for

Farmers around Lifford have had to send their cattle to alternative abattoirs since Edenmore cattle. That’s how has been closed businesses die. It doesn’t augur well for the future

from page 15 in a really prehistoric, small abattoir,” he role he still holds – in June 2014. He left his But since late last year, the factory has tells The Sunday Business Post. own practice in Cork to move to Donegal been almost silent – almost. The business – then called McGavi- with his wife to be, a native of the latter A sign on the gate outside warns against gan Meats – was doing well. So well, in county. But when he arrived to work, he trespassing: “You are advised to read the fact, that McGavigan soon outgrew’’ the was dismayed by what he saw. following notice thoroughly and carefully. small facility run by his father, and set to Edenmore, Daly says, was living hand Liam McGavigan (right) in What Are You Eating? on RTÉ last year RTE It is a lawful notice. It informs you. It work building a bigger abattoir. But the to mouth from invoice discounting, a The abattoir at Edenmore Farm Meats, means what it says.” estimates offered to him by an architect facility offered by a lender which al- now from four or five farmers who are newspaper headlines proclaiming the It is addressed in particular to employ- were massive. However, he wasn’t going lows companies access credit based on which has been standing idle going to see Robert Daly, who are going end of the siege at Lifford, McGavigan last ees or agents of “CORPORATE COURTS . to let that stop him. the robustness of their debtor book. As since late last year to see Richard Burke, or who are going week told this newspaper that he plans . . and any member of An Garda Síochána He went back to Britain, where he a company is paid back money, it then to see Donal , I’m there. I have to appeal against the judge’s decision to who is acting for the CORPORATE PO- bought a portable framed building that repays its lender. All pictures: Bryan Meade to support them, these guys supported injunct him from preventing access to LICE and not acting for and on behalf of had been a supermarket. That was to be “The only positive thing was discount me.” the plant. the Irish people as expressed in the oath his abattoir. As for the task of running the invoicing, and you were getting a draw- He said that he has formed a committee When I ask him if he will give up the of office of all Gardaí”. plant, he had a plan as well: “I’d never down on your sales every day,” Daly says. to support farmers “to help them pur- land, his face hardens and he doesn’t “Please also take notice that the land been in a big factory. I had to sneak into But the company was in serious fi- sue Edenmore Farm Meats and get their speak for five long seconds. known as Ireland is a Common Law ju- factories with different suppliers to get nancial trouble; McGavigan could see money. I am on the side of the farmer. I am “I have undertook not to obstruct any- risdiction and any transgression of this an idea of how high the rails were, how that. “We had to stand back and make in the same situation as them. Anything I body. That has been appealed, I have ap- notice will be dealt with according to wide for the cattle. I didn’t know, but decisions,” he says. According to Daly, a can do to help them get the money, that’s pealed that judgment and I will appeal Common Law. You are deemed to be myself and my brother figured it out. rescue plan for Edenmore was formed. what I will be doing”. anything else.” served this notice with immediate ef- We had to educate ourselves because I A new financier was to be found, while Letters have been distributed to Daly’s fect. In sincerity and honour, without couldn’t pay for the knowledge, and I Enterprise Ireland and AIB would con- neighbours alleging that he and the oth- ill-will, frivolity or vexation, WITHOUT wasn’t going to not do it.” tinue to support the company. There were er directors of Edenmore have “ripped ‘I think people trust PREJUDICE, ie, all natural and inalienable The business was a success. At its peak, jobs to be saved in a remote rural location, off” farmers over debts of €1 million, the state less’ Rights Reserved.” McGavigan was killing up to 1,000 lambs in a business that was competing in the and accusing them of “betraying” their The notice is signed by Liam McGavigan a week and 250 cattle. He had deep re- global meat trade, where giant beef bar- own people. The company rejects these In the hills outside , one – who, until recently, owned and oper- lationships with local farmers who ons dominate, says one source. The push claims and says that it has appealed to farmer whose family has farmed this land ated the factory – and dated October 26, supplied him, helped by his charming was on to save Edenmore Farm Meats. farmers – and enjoys the support of many for 100 years wants the plant reopened. 2016. On that date, McGavigan and others manner. But then, all hell broke loose. Daly had in the area – telling them that their best He is owed money by Edenmore, and is took over the plant, and have refused to “He could sell ice to an Eskimo,” re- discovered that, during an audit of the chance of being repaid lies with the plant unsure of being repaid. But he doesn’t like leave. Since then, a massive cattle truck marks one source who has worked with company’s invoice discounting facility, reopening. what has gone on at the plant. has blocked access to the Lifford plant. him. AIB had asked for the phone numbers But the occupation goes on, as does the “I think people trust the state less, and Behind the occupation is a complex of the company’s top debtors to check campaign. Leaflets have been distributed the organs of the state. That’s partly it,” web of debt, finance and threats of vi- their balances with Edenmore. However, outside Mass as far away as , he says, citing recent Garda controversies olence. Gardaí are now investigating at No way out the numbers supplied included those where Donal Gallagher’s elderly par- and the banking crisis. least two credible threats from the INLA, Like many small businesspeople, Mc- of Edenmore employees, who alleged- ents live. Their home, too, was targeted “The banks lent money to people who allegedly related to the siege. Gavigan was encouraged by the booming ly told the bank they were debtors and by protesters. According to Gallagher, couldn’t repay. And that’s the first mistake It is a heady mix. economy and the property sector. And, confirmed erroneous balances. When his father has serious health problems they made. . . The banks were responsible, Men come and go at the plant. But the like many others, he borrowed to par- this was disclosed, AIB walked out on and was hospitalised as a result of stress but the people who are borrowing are plant’s managing director, Richard Burke, ticipate. “Over the years, I would have Edenmore. arising from the protest. also partly responsible – but they won’t is not among them. He was sent by Donal been buying various properties,” he says. McGavigan told The Sunday Business According to McGavigan, this prompt- accept it, and they’re blaming it all on Gallagher – a London building contractor He also bought a neighbouring slaugh- Post he has no knowledge of the above ed a furious reaction from Gallagh- the banks. And that has manifested itself and first cousin to McGavigan, who bailed terhouse, Riverview Meats. “But then I events relating to the audit. er. In the course of an angry phone- since the crash.” out the company – to oversee Gallagher’s bought a farm of land, a few houses, and “We were snookered. That was the call to McGavigan’s brother that night The farmer’s prognosis for Edenmore investment. then I bought Riverview.” company,” says Daly. A cattle truck blocks the sell on the beef. The problem is that Liam land in receivership in Donegal, including Cashflow was constrained, and pay- Gardaí believe that both the encounter Above left: the yard at The next day, McGavigan made good both McGavigans say he made threats is also pessimistic. It was his job, Burke says, to run the He twinned Riverview with McGavigan There was one last chance of salvation, entrance at Edenmore would not give that information to Robert last November’s “reclaiming” of the Kube ments to farmers and other creditors and the phone call were on behalf of the Edenmore Farm Meats; on his threat to “evict” Edenmore from against them which have been reported “The longer their place stays closed, company, to turn its finances around and Meats, his family business, and Eden- however. Farm Meats or myself for upwards of ten days, two office building. A source in the organi- slowed. Meanwhile, relations between INLA and, as such, should be treated as above: , the the property. According to court papers, to the Gardaí and PSNI. the harder it is. . . people find other out- to manage its debts. more Farm Meats was born. By 2009, the weeks afterwards. At that stage, the beef sation told this newspaper: “The group’s the new owners and McGavigan were a threat. Sinn Féin TD, has acted as a his brother took possession of the abattoir Earlier this month, Liam McGavigan lets for cattle. That’s how businesses It was a job that would require him to year that the deal closed, he was in debt, is sold, more than likely at a loss,” he said. attitude to that is simple. Whether it’s the terminally bad. Crunch talks between the farmers mediator in the dispute and fortified it on October 26, along with told the High Court that he would not die,” he says. “It doesn’t augur well for become closely acquainted with the busi- but not in trouble. He had no issue with Bad relations McGavigan rejects this assertion. “Bol- Kube, a farm of land, or your semi-de- In late September, McGavigan ended and the company were convened at the a number of unknown individuals. Since obstruct the receiver’s agents. But despite the future.” ness. Now, the closest to Edenmore Burke offering up extra security for his debts McGavigan’s cousin, Donal Gallagher, is a locks,” he says. “I had to get prices off tached house, if you believe you have his relationship with a Dublin-based me- factory, chaired by Sinn Féin TD Pearse then, no person has been able to enter will go is the top of a slip road leading to when the bank came calling. successful building contractor in London. them on a daily, weekly basis. He was the right to be there, and another party diator appointed by Gallagher to work Doherty. At the meeting, Donal Gallagher the plant without the consent of Liam the plant. He doesn’t want to drive down “I would have seen the bank as some- Accounts differ as to the intended scale aware of what I was paying for cattle on is using unlawful means of deposing you through his banking debt. Again, McGav- outlined to farmers his plans to keep the McGavigan. the lane, and he doesn’t want to stay long one you work with, because I never of his involvement in Edenmore. a daily, weekly basis.” of that property, then you have a right to igan has alleged that this arrangement did factory in business and pay its debts. Those who have tried, including an – in all likelihood, he says, word of his would have seen that there would be an According to Richard Burke, the man However, a potentially more serious remain in it, and to keep it.” not serve his interests. But for the com- There are different views of the -ef asset manager instructed by the receiv- arrival will have got out within minutes. issue; I would have thrown them deeds, sent by Gallagher to run his investment, issue was McGavigan’s debts, and how By January 2016, Liam McGavigan was pany, it was the last straw. On September fectiveness of the meeting. “There was er, have been faced with demands to If he goes down the lane, there is only blah blah blah,” he says. All told, he owed it started as a loan. An initial investment they might affect the company. sending letters to AIB officials which 26, he was fired from the company he progress made in my view at that meet- ‘produce paperwork”, according to court one way in, and one way out – and that’s the banks more than €1 million. But the was followed up and eventually, by the According to McGavigan, the com- display the hallmarks of the lay litigant had founded. ing, with Donal laying it on the table, documents. not a position he wants to find himself in. merger with Riverview didn’t go to plan. end of 2014, Burke claims that Gallagh- pany had very little debt when it was approach. In one example, seen by this In some ways, though, the battle for agreeing to reach out to the other party McGavigan, for his part, claims that he There were difficulties in running a larger, er was owed hundreds of thousands. A sold – but there were more debts. Court newspaper, addressed to “a living man”, Edenmore was just beginning. and engaging with them if he could in is owed money by Edenmore, including ✽ ✽ ✽ more complex facility. And the econo- deal was struck, according to Burke, that papers reveal that two loan facilities were McGavigan says that he does “not legally trying to resolve issues,” Doherty says. €170,000 in rent. The company disputes DEADLINE APPROACHING my, once roaring, was slowing down. would see all the shares in the company advanced to McGavigan secured on lands and lawfully accept, and I do not legally “I said to the farmers that this was really this, and says it has evidence to the con- oly God, that was stressful,” McGavigan’s liabilities were structured transferred to a company controlled by he owns, including the land on which the and lawfully consent, to any and all cor- Intimidating threats a game of trust. That farmers needed to trary. IMPORTANT DEADLINE FOR DISCLOSURE Liam McGavigan says. as follows, he says: he would pay into a Gallagher. abattoir is built. respondence received from AIB Financial Following McGavigan’s sacking, a series trust and supply Donal, he would slaugh- However, he claims that he acted on It was April 2016. His rela- pension fund which, upon his retirement, McGavigan says: “He never lent me In court papers and in interviews with Solutions Group to date”, and demands of protests were organised of farmers ter it, and he would pay them for the new behalf of farmers, not because of the OF FOREIGN INCOME AND ASSETS tionship with his employer would pay out a lump sum to his debtors, any money, or gave me any money, and this newspaper, McGavigan says that on “the original wet inked loan offer agree- owed money by Edenmore. McGavigan product, but also for arrears.” By mid- debts. “I put them out because the ma- ‘Hwas at an all-time low; he says he had satisfying his obligations. there never was a circumstance where Many lay the advice of the new company owners, ment . . . [and] deed of mortgage”. denies organising these protests, but he However, Doherty says that there was jority of the farmers know that by them been sidelined from a business he built, But the recession was not kind to finan- he was going to. He came in to buy the he allowed their solicitors and a mediator McGavigan credits the Helping Hand says he knew they were happening and “a very small number of people there who October, boys staying, they’re not going to get 30 April 2017 and the bank was seeking money it was cial assets globally, including McGavigan’s company. He bought the business, Eden- litigants, to interact with the bank on his behalf. with a lot. “Because of the Helping Hand was in touch with protesters. were disruptive in terms of the meet- paid,” he told this newspaper. owed. But this wasn’t the cause of his pension plan. “When the slump came, more Farm Meats.” facing However, he alleges that this process was and the advice that I got, I was able to “I said to the boys: ‘You have to get ing”, raising issues around the payment things were “The endgame is to get the damn thing stress. He was stressed by going vegan. apparently, what I had paid in was really Either way, in January 2015, McGavigan ultimately not in his interests. He was avoid losing everything at that point,” down there, because this is not going well of water and commercial rates by the at crisis point. sorted and get the farmers paid. I don’t He had just been into a local super- reduced . . . it lost a stack of money. The resigned as a director of the company and debts, have losing trust in that process, which was he says. and this has gone too far’,” he says. “They factory, which he called “contrived”. The care if I walk up the street with nothing, market, looking for food free of animal lump sum wasn’t there.” Burke was appointed. compounded by a demand from the bank started protesting themselves. I didn’t company insists that an agreement was Locks on the it just has to be sorted.” products. He was shooting for an ep- When the bank came to him to improve According to Burke, he set to work frustrated the in September 2015 for repayment of loans orchestrate it.” Throughout the month, in sight with the farmers. A company However, it is unclear how the factory isode of RTÉ’s What Are You Eating?, their security, they then wanted him to right-sizing the company’s debts, re- repossession and an overdraft. Brexit blow farmers arrived to the office to demand director said: “The company has at all gates of the will pay its debts if it is closed. presented by Philip Boucher-Hayes. The start selling assets, to make repayments. ducing its liabilities to the bank (corpo- According to Burke, the situation Back at Edenmore, the company was payment, and sporadic protests occurred. times expressed its determination to get factory were The company says that “the length of Do you have undisclosed tax liabilities involving offshore matters, such as programme was to chart three months “When they had me tied up and more rate loans were paid off by Gallagher, he of their around McGavigan’s debts was becom- about to be hit with a body blow. By Meanwhile, Edenmore’s worst fears all farmers paid once normal operations the occupation, the ferocity of the hostile • an account anywhere outside the State of a meat-eater’s life as a vegan. secured, they told me they wanted me to says) and to farmers (an overall liability of ing serious for the whole company. “The midway last year, Burke and Daly were were realised when AIB lost its patience were allowed to resume unhindered for broken, a tactics adopted since the occupation, the “I would start off with cereal, toast, a reduce the debt. My attitude was always around €1.3 million was brought down to properties by information flow of all aspects of the debt happy that they had put the company on and appointed a receiver over McGavi- the duration of the lease of the plant. A harassment and the threats to staff are • any income or gains from, or in, any place outside the State pint of milk in the morning. Lunchtime, to try to add to what I had, not to sell stuff just €200,000). McGavigan stayed on at related to the company – [McGavigan] a sustainable footing. But all that changed gan’s debts. Compounding their diffi- payment plan was proposed and accept- truck used by all a very serious challenge” to its plan • any property outside the State? I would probably have stew and anoth- off,” he says. the plant, working with farmers. The new advocating stopped communicating on that,” he says. when Britain voted to leave the European culties, they received a registered letter ed at that meeting, chaired by Pearse to repay debts. er pint or two of milk. And then in the McGavigan says he had never been owners had no experience of the beef Union. days later from McGavigan, demanding Doherty”. the factory spurious legal Then you have until 30 April 2017 to make a qualifying disclosure. evening, I would have another dinner intimately involved with the finances industry, and his expertise was important. “That was a critical night for us as a payment of rent he claimed he was owed. A farmer who was at the meeting, was taken, again,” McGavigan says over footage of of his companies. He is a front-of-house “That meant the emphasis was on us, philosophies ‘AA for debtors’ business. Sterling changed value by 17 Court papers lodged by the receiver speaking on condition of anonymity, Livelihoods at risk him eating meat and drinking milk. He man. “I was running the logistics of the and we had to work right and work to- Around this time, McGavigan started per cent. We had to increase our prices show that he received a letter from Mc- said that some of those who turned up and a second Since the occupation began, the receiver If you don’t meet the deadline, then in addition to any tax and interest didn’t seem like a man overly troubled factory, managing the staff, doing the HR, gether to get everything resolved,” says such as attending meetings of an organisation to the sterling area by 17 per cent. The Gavigan, alleging that he was a trespasser, and asked questions were not farmers. A has battled in the High Court to secure payable, you will be liable to higher penalties, your name may be published by life – outside of the idiosyncrasies of doing logistics. Managing procurement. Burke. common law called The Helping Hand, based in Let- disadvantage we had was that the big- had caused criminal damage, and was second farmer, however, was scathing. He vehicle was an injunction against it, claiming that it in the quarterly List of Tax Defaulters, and you may be the subject of a veganism – but he had every reason to be. I was doing everything bar managing But relations between McGavigan and terkenny. ger plants had hedged their exposure to being fired from his role as a receiver. It said: “That meeting was not very clear . . . is obstructing his duties and putting the criminal prosecution. McGavigan came back to Donegal from finances and accounts, that wasn’t my the new owners were poor. McGavigan One member of the group told The sterling closer to January – we couldn’t also contained an invoice for a sum of I wasn’t happy with that meeting at all.” damaged business of Edenmore and the livelihood or ‘Freeman For further information go to www.revenue.ie/go/169/ England, where he had been working in remit at all.” alleges that at one stage, he and Gallagher Sunday Business Post that it is “like an do that,” says Burke. €2.5 million for trespass. According to Five days later, a second alleged threat beyond of the employees at risk. construction, in the late 1990s. He re- But by 2014, there was no way out: “It had a heated row, and that Gallagher’s on the Land’ Alcoholics Anonymous for people with “We were killing that week, and put- the receiver, these had “no legal effect”. was made, this time to Richard Burke. But away from the plant, the protest or contact us on 1890 374 757. turned to Lifford, the small border town had got to the stage where I had to make knowledge of the beef sector was so poor ideologies debt”. ting product out, and customers were By mid-October, things were at crisis According to him, during a heated protest repair campaign has continued. Twice so far across the Foyle from Strabane, Co Ty- decisions . . . I was aware we weren’t that he referred to “cows” rather than It advises debtors on court strategies, saying: ‘Sorry, you’re too dear.’ Through- point. According to court papers, locks at the factory, a van appeared. “A van this year, protesters have turned up to rone. The area saw more than its fair share making money. I was made aware that we “cattle”. including lay litigation tactics. Many lay out June, July and August, it wasn’t just on the gates of the factory were broken, a had been in and around the premises. the home of Robert Daly, the Edenmore of bloodshed during the Troubles. But weren’t making money. The accountants For his part, Burke says that McGavigan litigants, facing debts, have frustrated the that the price in Britain went crazy. Plants truck used by the factory was taken, and I received a phone call that it would be financial controller, demanding payment when McGavigan came back, it seemed said we weren’t making dough.” – who was responsible through his cat- repossession of their properties – not to like ourselves went to the European mar- a second vehicle was damaged beyond back in ten minutes to shoot me, unless of debts. to be turning to peaceful ways in the wake tle-dealing activities for 86 per cent of the mention the courts system – by advocat- ket, so the European market was flooded repair. A key employee at the factory was I left the plant immediately and severed On both occasions, his wife and two of the Good Friday Agreement. company’s cash outflow and remained a ing spurious legal philosophies such as with beef. Prices there collapsed. It was a allegedly intimidated during an encoun- all contact,” he told this newspaper. young children have been in the house; He began slaughtering cattle at the Serious trouble key part of the management team – was common law or ‘Freeman on the Land’ double whammy. No matter where you ter on the street with two men, and in a A form issued to Burke by the Gar- and on at least one, McGavigan was www.revenue.ie small slaughterhouse owned by his fa- “The accountants”, at that stage, consisted impossible to deal with. ideologies in recent years. went with your beef, you were being subsequent anonymous phone call. This daí indicates that the guards believe the present. When asked about the protests, ther. “My father had a fairly small place, of Robert Daly. He had joined Edenmore “You need to know immediately within The Helping Hand has been involved hammered . . . there was a glut of beef was later reported to the Gardaí. Accord- threat was genuine, and was made on McGavigan said: “I have been invited to killing about four or five cattle a week, Farm Meats as chief financial officer – a 48 hours what [cattle] cost, so you can in several reoccupations of buildings and everywhere.” ing to an official Garda document, the behalf of the INLA. a couple of those. If I get a phone call