McInerney board will resign after wind-up refusal
Published 29/07/2011 | 05:00
ALMOST the entire board of McInerney Holdings -- the rump of the ailing housebuilding company -- is set to resign today, immediately after a shareholder meeting where their bid to have the firm wound up will be rejected. Almost 82pc of the votes cast by proxy to date by shareholders are understood to have opposed the resolution.
Chairman Ned Sullivan is among those who will resign from the board. Others include finance director Enda Cunningham, Brendan Gilmore and Daniel McInerney. However, it's understood that former McInerney Holdings managing director Barry O'Connor has indicated he does not intend to resign.
Early last year Mr O'Connor expressed an interest in McInerney's Spanish operations and, as a result, he stepped aside from the managing director post, which was filled by Mr Cunningham. McInerney's Spanish assets have since been sold to a local concern.
Activist investor David Nabarro, who recently acquired 21pc of McInerney Holdings at zero cost, hopes to attract external funding to use the McInerney vehicle for continuing enterprise.
He and two colleagues, Kevin Lynch and John Garratt, are expected to be elected directors of McInerney Holdings today.
They had secured the holding of an extraordinary meeting of the company next month at which they had originally intended to seek their election to the board and the removal of existing directors.
Last week, McInerney Homes, which represents the Irish divisions of the construction company, was placed in receivership after the Supreme Court rejected an appeal to a previous High Court decision that refused to approve a rescue plan for the firm that had been proposed by the directors.
Had the plan been adopted, US private equity firm Oaktree Capital had pledged to invest €54m in it and a related firm in order to keep them going.
Mr Nabarro is now contemplating an approach to the receiver to see what role McInerney Holdings could play in progressing work on sites owned by McInerney Homes.