Court allows builder to break its contracts
Published 13/11/2010 | 05:00
THE High Court has allowed McInerney Homes, which is under court protection, to break some of its contracts as part of a bid to save the construction company.
The agreements were repudiated yesterday with consent of the other parties involved and on terms including compensation due to the other parties, totalling €45m.
The actual payments are dependent on the outcome of the McInerney group's bid to secure approval for a survival scheme.
Court protection for the group has been continued to December 3.
The court heard there was consent to repudiation of agreements related to two developments in Limerick and another development at Rathdrum, Co Wicklow.
The amount of compensation due to Ulster Bank amounts to €12.7m.
Another agreement involving Greenband Investments was also repudiated, with compensation agreed at €18.4m.
A separate agreement between McInerney Homes, Greenband and John Hegarty was also repudiated, with compensation agreed at €9.9m.
A further agreement was reached with Lesley and Carmel Buckley, Rocklands, Harbour Road, Dalkey, Co Dublin, with compensation agreed at €4.58m.
Mr Justice Clarke noted that the compensation sums would go into the mix of sums due by McInerney Homes.
If there was a scheme of arrangement agreed, a dividend would be paid but if there was no scheme approved, the various creditors would take their place in the queue in whatever form of insolvency procedure would follow.