By Pierce O’Reilly
Creditors of Rego Irish Records and Tapes, Inc. have an anxious wait over the holiday season wondering will they be paid outstanding debts after the company was sold earlier this week.
The chief executive of the New York-based Rego, Paddy Noonan, sold the assets of the company to Irish Music Corporation and it appears that the new owner has no obligation to clear outstanding debts.
Noonan has being supplying Irish music aficionados all over the world with CDs, cassette tapes, and other music memorabilia for the last three decades.
A full transfer under Article 6 of the New York Uniform Commercial Code took place on Monday, Dec. 18. A notice to creditors claims that Irish Music Corporation does not intend to pay all of the debts in full as they fall due and has no knowledge or information as to whether Rego Records will pay in full either. The estimated total debts amount to $816,000. Rego Irish records will receive $44,765 from the Irish Music Corporation as new consideration for the transfer.
Tom Horan, manager at Rego, said the business did not go bankrupt.
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"The assets are being sold and the new company will take over everything," he said. "We’ve being the largest Irish-American supplier of Irish music for the past number of years and our music catalogue is world renowned. We hope the strong tradition and good name is carried on."
Tom Mc Grath, consulting general manager of Irish Music Corporation, refused to comment on the outstanding debts, but he did say that Rego’s clients would be looked after under the new name.
"It’s an exciting time for us with the ever-expanding world of e-commerce and the internet," he said. "We’ve tried to make the transition as smooth as possible and we hope that all the loyal customers will remain on board.
"It’s our business to look after and promote all Irish artists where ever possible and we’re hoping that this latest transaction will further develop the new company."
McGrath’s family has been involved in the music industry many years. They run the Tipperary at Tara retail outlet in Brunswick, N.Y.