McInerney board seeking to liquidate cash-strapped firm
Published 08/07/2011 | 05:00
The board of the distressed housebuilding firm McInerney Holdings wants to liquidate the company, saying it has "no meaningful assets" and no cash to deal with even the most basic of administrative tasks.
The move, if approved by shareholders, will effectively mark the demise of a group that listed on the stock exchange in Dublin 40 years ago.
In a letter to shareholders, chairman of the group, Ned Sullivan, said it was with "great regret" that he was informing them of the decision.
"The directors pursued every measure possible to safeguard your group and put in place a restructuring plan that could have offered shareholder value in the future," he told shareholders. "It is with great regret that the level of debt in the group's various divisions and the continuing falling market have not allowed us to be successful in this regard."
He added: "McInerney Holdings plc now has no meaningful assets of worth and no bank facilities."
An extraordinary general meeting is due to be held on July 29. If approved, the liquidation will likely end efforts begun recently by British-based investor David Nabarro to oust the McInerney board. He owns over 21pc of the group and has threatened to seek an injunctive relief if McInerney fails to include his proposals to remove the board at any egm it calls.
Mr Sullivan said that if the liquidation proposal is rejected then board members will "consider their individual positions".
McInerney Holdings cancelled its stock market listing in Dublin and London last November. The group entered examinership in August last year, burdened by debts.
US investment fund Oaktree Capital had expressed an interest in backing the group, but it later confined its interest to Irish units of McInerney.
A decision was taken to exit McInerney Holdings from examinership.