SIAC's 200 jobs safe as firm gets €8m injection
The 101-year-old construction company SIAC Holdings appears to have been saved along with 200 jobs.
The company looks set to be saved by the Feighery family, who are the majority shareholders of SIAC Holdings, and a group of investors who will pump in €8m.
The investors include chief executive Martin Maher, senior management, and other investors from France. The existing shareholders will maintain control.
The move will protect the group's core construction and engineering contracting operations, which had been in danger since Michael McAteer of Grant Thornton was appointed examiner to nine related companies late last year to give protection from creditors owed €42m.
The deal was agreed with Mr McAteer but must still be approved by the High Court. The investors include former chief executive Finn Lyden, Colas Teoranta and Ducales Trading No 2 Ltd, a private family investment company from Northern Ireland controlled by Paul Walsh.
The new company will provide incentives for SIAC to pursue the Polish authorities for compensation after the company encountered problems in Poland that led to large losses, which eventually brought down SIAC Holdings.
Around 30pc of any money recovered from Poland will be used to reduce the shortfall of agreed creditors resulting from the examinership.
The money recovered will be split 20pc for agreed unsecured creditors of SIAC Construction Ltd and 10pc to the property companies that are liable for the secured bank debt. Creditor meetings are expected to be convened for January 27 to agree the deal.
"I am relieved that subject to creditor and court approval, the SIAC group established in 1913 can once again strive to be a leading Irish construction business," chief executive Martin Maher said. "I would like to thank our creditors, clients, partners and employees."