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Court clears way for SIAC survival scheme

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SIAC is one of the biggest construction companies in the country

SIAC is one of the biggest construction companies in the country

SIAC is one of the biggest construction companies in the country

THE Supreme Court has cleared the way for the implementation of a survival scheme for key companies of construction giant SIAC.

The court yesterday dismissed a last-minute challenge by the Polish Roads Authority (PRA) to the scheme.

The PRA, which claims it is owed up to €70m by SIAC, had urged the Supreme Court to approve changes to the scheme to take into account a claim it has pending in Poland against SIAC.

Its application, made after the High Court earlier this month approved the scheme, was strongly resisted by SIAC, its examiner, creditor banks and a group of investors whose investment of €10.5m was described as essential to the survival of the companies and the jobs of 219 employees.

The High Court had placed a stay on the scheme coming into effect pending the PRA appeal.

The three-judge Supreme Court told a packed court yesterday afternoon it would dismiss the PRA appeal.

It is to give reasons later.

The survival proposals involve a €10.5m investment in the company, with about €5m going to secured banker creditors – Bank of Ireland, Bank of Scotland and KBC Bank, owed some €42m.

The companies have 1,255 creditors and most of those will get between five to 10pc of what they are owed.

The PRA, a state authority, argued it was unfairly prejudiced and would get nothing under the scheme despite paying out millions to some Polish creditors of SIAC.

John O'Donnell, for the investors, said they simply had no more money to put in and it was vital for the survival of SIAC the original scheme be approved.

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