Provisional liquidators appointed to Cork building firm which owes NAMA €71m
THE High Court has appointed provisional liquidators to a Cork building firm which owes NAMA more than €71m.
NAMA subsidiary National Assets Loan Management Ltd (NALM), asked Mr Justice Paul Gilligan to appoint joint provisional liquidators to ensure an orderly winding up of O'Brien and O'Flynn Ltd Building Contractors, of Doughcloyne House, Vicars Road, Cork.
The company's directors are brothers Dan and Denis O'Flynn.
The court heard the company owes NAMA some €71.2m with assets worth less than half that amount. The debt to NAMA arose after it took over loans advanced to the company by Bank of Ireland and AIB in 2010 and 2008.
Robert Fitzpatrick Bl, for NALM, said appointment of a liquidators to what was an insolvent firm would not just be "in the interests of the taxpayer and NAMA" but also "creditors of the company."
Counsel also told the court that there was some urgency in the application because NALM had concerns that assets maybe dissipated unless liquidators were appointed
The company was insolvent on both a balance sheet and on a cash flow basis, he said. A demand for repayment of the loans was made on the company earlier this week but had not been satisfied.
Counsel said that in recent years the company had been able to survive due to funding provided to it from NAMA, and from rents it received from certain property assets.
However, that funding had now dried up and NAMA was no longer providing the company with financial support.
There had been talks between it and the company for some time, but NAMA became concerned about the involvement of a third party in efforts to restructure the company.
Counsel said NALM also had concerns about the proceeds of sale of one of the company's property assets.
The proceeds, thought to be some €1.3m, should go towards paying off what it is owed. However NALM is unaware if that money remains within the company.
Mr Justice Gilligan said he was satisfied to appoint John McStay and Tom Rogers, of insolvency practitioners McStay Looby, as provisional liquidators of the company. The matter was adjourned to a date next month.