Sunday 23 July 2017

McInerney still considering ruling appeal

Donal O'Donovan

Donal O'Donovan

BUILDING firm McInerney Homes was last night still considering its response after the High Court rejected a rescue proposal put forward by the company's examiner on Monday.

A source close to the company told the Irish Independent a decision on whether to appeal the ruling to the Supreme Court or walk away from the case had not yet been taken.

The company has until today to make a decision. If McInerney does not ask for permission to allow a case be taken to the Supreme Court, then either the examiner or one of its creditors is set to put the company into receivership as early as tomorrow.

McInerney has been protected from its creditors since September last year under the examinership process.

That protection will end tomorrow when Justice Frank Clarke is due to make a formal order on the case.

On Monday, he said lenders to the company should be free to try to recover as much as they could on their loans to McInerney rather than having the losses proposed by the examiner, William O'Riordan, imposed on them.

The proposal rejected by the judge included a plan to pay €25m to Bank of Ireland, Anglo Irish and KBC as settlement of a debt of €113m. The banks opposed the plan.

The limited repayment was at the heart of a wider rescue package the examiner submitted to the court for approval.

US investor Oaktree Capital had agreed to finance the bank deal and to provide new capital for McInerney if the court accepted the proposal.

A source involved with Oaktree signalled yesterday the US fund would not involve itself in any appeal. The source said Oaktree's involvement with McInerney was focused on pursuing the examiner's proposal.

Investment bank Goldman Sachs and solicitors William Fry are McInerney's advisers.

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