Corporate enforcer in probe of insolvent technology firm Xsil

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Corporate enforcer in probe of insolvent technology firm Xsil

Gareth Naughton

Investigation: Paul Appleby, director of corporate enforcement

A high-tech company once lauded as a major Irish success story, Xsil, is being investigated by the Office of the Director of Corporate Enforcement (ODCE). Enterprise Ireland is also reported to be owed money by the company.

Enterprise minister Mary Coughlan has instructed ODCE director Paul Appleby to investigate Xsil on foot of concerns raised by ex-employees currently seeking redundancy payments.

"I recently asked the National Employments Rights Authority to undertake an inspection at the company's premises. Unfortunately, it was not possible for inspectors to gain admittance to the premises, which was closed up.

"Separately, and in light of the powers vested in the ODCE under company law, I have forwarded the matter to the ODCE for further investigation," the minister wrote in a letter to a former Xsil employee.

Xsil was founded by Sunday Times rich list entrepreneur Peter Conlon and sold laser technology to the semiconductor industry. Successful for several years, Xsil had sales of €38.3m in 2006, recording pre-tax profits of €8.5m.

However, its fortunes dipped dramatically last year.

Sixty staff were laid off in May with the remaining 44 employees placed on temporary redundancy in November.

Some employees have since gone to the Employment Appeals Tribunal to establish that they have been made redundant so they can apply to the state for statutory redundancy.

Xsil's success was regularly trumpeted by Enterprise Ireland but it is now seeking the return of its financial support.

"The company is now in breach of its grant aid agreements. Enterprise Ireland has formally revoked and is seeking recovery of grants paid to the company and has cancelled unpaid grant aid not yet drawn down," said the minister.

Conlon said last week that there has been no communication between the company and the ODCE. He said the company is insolvent but denied speculation that assets had been sold for a multi-million euro sum. Not all company assets had been disposed of, he said, and those that have, sold for "cents".

The Enterprise Ireland funding was small relative to Xsil's operations and, as far as he was aware, had been written down, he added.

April 12, 2009

Comments

#1 Andrew Sharkey commented, on April 13, 2009 at 1:24 p.m.:

As one of the affected employees of this company (I am one of the 44 let go in November) I hope the ODCE investigate this thoroughly, and if any wrong doing is discovered, appropriate action is taken swiftly.

NB: To this date, the 44 staff have not received Salaries for October 2008, nor have they received Redundancy payments or Notice period, all of which are legal entitlements.

#2 Jack commented, on April 13, 2009 at 1:27 p.m.:

It is typical of the Irish Government to let these Rich Serial Entrepreneur's away with treating Hardworking Irish employees like this.
They should be forced to pay any outstanding money to their now ex-employees. They should be forced to repay Enterprise Ireland every cent they got. The ODCE should make public their findings to the Irish Taxpayer.

#3 Anonymous commented, on April 13, 2009 at 2:52 p.m.:

Eamonn Ryan of the Green Party has encouraged state bodies to do more business with Peter Conlon's new company, Ammado. See <http://www.ammado.com/company/ammado-...>.
I think this is outrageous, given the history of Xsil and its treatment of staff.

#4 Ex Employee commented, on April 13, 2009 at 3:03 p.m.:

Good Article! Although you forgot to mention Mr. Conlon's hypocrisy with his other company http://ammado.com.

And I believe Conlon has had comuniction from the ODCE. So much so that he was willing to be more co-operative with staff if the complaint was withdrawn.

#5 Anthony Waldron commented, on April 14, 2009 at 9:25 a.m.:

I think the Govt need to go after Peter Conlon and get the Xsil employees their money. I would say that peter Conlon is not short of money and is not poor man so the govt need to look at his personal assets and take from there in order to help the Xsil employees.

#6 Ex Employee 2 commented, on April 14, 2009 at 8:16 p.m.:

Serial entreprenuers like Conlon should be held accountable for their actions. I would have thought that he should be counted as a General Partner, and therefore liable for the costs. Conlon has bags of cash because ONE of his ventures paid off. Xsil had ONE customer and ONE product. Entrepreneur of the year... I think not

Good luck to the 44!

#7 Ronan O Reilly commented, on April 15, 2009 at 9:20 a.m.:

I'd like to agree with all the above comments.
This is yet another example of the unbridled greed that has our country in its current situation.If the government and by association the ODCE has any teeth at all,it should ensure that the employees get their statutory rights and are paid for their efforts.After all Ireland is not a banana republic,( I Hope )!

#8 Valerie Murray commented, on April 15, 2009 at 12:22 p.m.:

The Irish Government and the ODCE should go after Mr Conlon and freeze his assets until every penny in wages, holiday pay and statutory redundancy is paid to these employees. How often is this situation happening to Irish employees? Its only through the determination of these former XSIL employees that this terrible situation they find themselves in has been highlighted to the Irish public.

#9 Former Employee commented, on April 15, 2009 at 3:37 p.m.:

I worked there a couple of years ago and I know that the sale lab equipment and Demo machines would be more than sufficient to cover everything owed.

#10 Harry commented, on April 15, 2009 at 9:13 p.m.:

A fair days work for a fair days pay is one of the tenets that we all should aspire to. However, the fat cats that don't play by the same rules as the rest of us always seem to prevail. Hopefully things will change, perhaps via revolution!
Viva la Revolution.
HOR

#11 paul commented, on April 17, 2009 at 12:20 p.m.:

It really is ironic that Mr. Conlon's new company Ammado is in the business of helping the less well off in society. But how does the CEO hope to earn credibility?

#12 Ex employee #3 commented, on April 17, 2009 at 5:19 p.m.:

This is yet another example of the unbridled greed that has our country in its current situation???

What about: this man has given 150+ people employment for the last few years, built one of Europe’s top companies and is one of the people who have made Ireland the success story it became.

Ex-employees above: How often have you seen Peter Conlon in the Xsil offices in the last few years? He QUIT as CEO a couple of years ago, he handed over the responsibility to start his new business; as much as I try – I can’t see his involvement in Xsil’s downturn.

It would have been our own duty to secure our jobs but it seems we failed to execute on the promises we made to our customers.

#13 Ex-employee #4 commented, on April 20, 2009 at 10:05 a.m.:

I absolutely agree with both Valerie Murray and Former Employee. All 44 employees placed on temporary redundancy in November last year are deserved what they should get.

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