Wednesday 12 December 2018

Carillion collapse leads to Irish firm fighting for its survival in court

(Stock photo)
(Stock photo)

Aodhan O Faolain and Ray Managh

The High Court has appointed a interim examiner to an Irish building contractor which has found itself in financial difficulties as a result of the "devastating collapse" of Carillion one of the UK's largest construction companies.

At the court yesterday, Mr Justice Robert Haughton appointed Mr Michael McAteer, of Grant Thornton Ireland, to the Co Kildare-based Sammon Contracting Group and related companies Sammon Contracting Ireland Ltd and Miceál Sammon Woodcraft Ltd.

The judge said that while the firms were insolvent, he was satisfied to appoint Mr McAteer on the basis an independent expert's report had stated the companies have a reasonable prospect of surviving if certain steps are taken.

These include the examiner putting together an agreement scheme of arrangement with the creditors.

If that scheme is approved by the High Court, it will allow the group to continue to trade as a going concern,

The group, which employs more than 216 people, was hired by an entity that included Carillion to build several education facilities in Ireland.

These include the construction of Tyndall College Campus in Carlow, Eureka Secondary School in Kells, Co Meath, Loreto College in Wexford and Coláiste Ráithín and St Philomena's National School which are both in Bray Co Wicklow.

Other projects include the Maynooth Educational Campus, which the court heard is the largest school contract in the history of the State.

It is also working on a Cork school, a Shannon Airport Authority building and housing developments in Waterford and Dublin.

After appointing Mr McAteer as interim examiner, the judge adjourned the matter to April 16. He also directed that the group's main creditors and Revenue be put on notice of the hearing.

Irish Independent

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