Activist investor David Nabarro has said he will seek new sources of private equity for the remnants of McInerney Holdings if shareholders vote to oust the current board.
In a letter to shareholders yesterday, Mr Nabarro said McInerney Holdings -- effectively the rump of what was the house-building group -- has slated August 17 as the date for an extraordinary general meeting at which investors can opt to vote off the board, including chairman Ned Sullivan.
Mr Nabarro's brokers, Redmayne Bentley, acquired about 21pc of McInerney Holdings at zero cost on behalf of the businessman after it delisted from the stock exchange and effectively became a shell company. Redmayne Bentley called the EGM to propose the termination of the current board's directorships.
However, Mr Nabarro has criticised the existing board for failing to put the proposals to shareholders to remove the board at an EGM to be held on July 29, where the company will seek permission to proceed with a voluntary winding up.
He told Mr Sullivan in an email: "You should think it an inappropriate use of desperately depleted shareholders' funds to put the company to the expense of two separate EGMs so close to each other."
Mr Nabarro told shareholders that if he and his representatives were elected to the board, they would seek meetings with the company's examiner, bankers and lead creditors to "listen and learn".
"To move forward, we will need to rebuild the company's businesses, based on a well-thought-out, prudently financed and determinedly executed business plan," he added. He conceded that this would dilute existing shareholdings, but that shareholders would be offered an opportunity to subscribe to any new fundraising.