Investor claims McInerney liquidation bid will fail
Published 09/07/2011 | 05:00
DAVID Nabarro, the activist British investor who is attempting to oust the board of distressed home building firm McInerney Holdings, claims the board's efforts to liquidate the company this month will fail.
Speaking to the Irish Independent yesterday as McInerney shareholders mulled over a letter from the firm's chairman, Ned Sullivan, proposing to wind up the company, Mr Nabarro claimed that he had received indications of dissent from investors that he believes will be sufficient to thwart the move.
Mr Nabarro owns around 21pc of McInerney Holdings, while the proposal to put the company into voluntary liquidation -- which is a special resolution -- will require a greater than 75pc majority at an extraordinary general meeting on July 29.
Mr Nabarro said yesterday that he was probing legal advice on whether or not he could seek injunctive relief in the High Court to force the McInerney board to include his proposals at the forthcoming EGM to remove the board members from their positions. McInerney Holdings' treasury director and secretary, Mark Shakespeare, ended his relationship with the company last week.
Mr Nabarro also told the board to call an EGM to put forward his proposals, but no date has been set.
McInerney Holdings chairman Ned Sullivan told shareholders yesterday that the firm had "no meaningful assets of worth and no bank facilities".
He added: "As there is no longer any remaining equity value for the existing shareholders and following consultation with our financial and legal advisers, the only realistic option available to your board at this point is to propose a voluntary liquidation of the company."
A Supreme Court decision is awaited regarding McInerney Holdings' Irish units. Banks owed €115m have objected to a rescue plan backed by US-based Oaktree Capital. Regardless of whether the rescue plan is adopted or the units are placed in receivership, McInerney Holdings will have no residual equity interest in the businesses.
Mr Nabarro said that he wanted to "salvage something" from McInerney Holdings from shareholders. "You can write off the company and guarantee that you get nothing or you can try to see if there's any value left there," he said.
He maintains that it could be possible to reverse another business into McInerney, but said he had nothing in mind at the moment regarding such a proposal.