No McInerney examiner, say banks
Published 11/09/2010 | 05:00
THREE banks owed tens of millions of euro by housebuilders McInerney Homes are opposed to the firm and several related companies being allowed go into examinership, the High Court heard yesterday.
The syndicate of three banks -- Anglo Irish Bank, Bank of Ireland and KBC -- which are owed about €113m by McInerney, also told the court that they will not support any rescue plan for the housebuilder because they do not believe such a scheme will succeed.
However, the company has disputed the banks' argument and stated before Mr Justice Frank Clarke yesterday that it was an "ideal candidate" for the examinership process.
Last month the court appointed William O'Riordan as interim examiner to McInerney Homes, with a registered address at Cleaboy Business Park, Waterford, as well as four related companies -- McInerney Holdings, McInerney Construction Holdings, McInerney Contracting and McInerney Contracting Dublin.
Mr O'Riordan was appointed after the court was informed that an independent accountant's report revealed that the firms have a reasonable prospect of survival.
Yesterday the company applied to Mr Justice Clarke to have Mr O'Riordan confirmed as examiner, allowing him to put together a scheme of arrangement that would ensure the firm's survival.
In a report to the court, Mr O'Riordan said that in the short time he has been involved with the firms he concurs with the assessment of an independent accountant that the companies have a reasonable prospect of survival if a scheme of arrangement can be agreed and approved by the High Court.
The court also heard that other parties, including NAMA, the Revenue Commissioner and other banking creditors of the group, were taking a neutral stance with regard to the appointment of an examiner.
The judge, after hearing arguments from both sides, said that he would give a decision on Monday afternoon.