The High Court has appointed joint provisional liquidators to an Irish-based firm that is part of a group of companies that provides mechanical and electrical services to power-generating wind turbine manufacturers.
The appointments were made in respect of Windhoist Ireland Limited, which has been working on a wind farm project currently under construction at Ardderroo, near Moycullen in Co Galway.
The firm has 17 employees in Ireland.
The court heard the wind-up order was being sought because the company’s Scottish-based parent Windhoist, which is part of Windlogix Group, was entering administration in that jurisdiction and it could no longer provide funds for the Irish entity.
File being prepared for DPP over insider trading
Christmas tech for kids: great gift ideas with safety features for parental peace of mind
MenoPal app offers proactive support to women going through menopause
Ezviz RE4 Plus review: Efficient budget robot cleaner but can suffer from wanderlust under the wrong conditions
This meant the Irish entity, and other firms within the group, lacked sufficient cash to pay the employees in Ireland and in the other locations, the court heard.
Companies within the group have been working on several projects, in locations including Finland and Taiwan as well as Galway.
However, it claims the contracts became unprofitable.
This was due to factors including the higher-than-expected operating costs and the withholding of money due under the contracts by customers, due to factors such as weather-related delays.
The parent company also owns and provided a significant amount of plant and machinery, including cranes, to the Irish entity so it could carry out its work.
Arising from the parent’s decision to enter administration, that plant would no longer be available to the Irish company, the court heard,
While the Galway project was not specifically loss-making, the lack of funds from the parent or the ability to use the machinery owned by the parent meant the Irish firm is now insolvent and cannot continue to perform its contractual obligations.
At the High Court on Tuesday, Mr Justice Brian O’Moore said he was satisfied to appoint Nicholas O’Dwyer, of Grant Thornton Ireland, and Stuart Preston, of Grant Thornton UK, as joint provisional liquidators to the company.
The company, he said, was insolvent and unable to pay its debts as they fall due.
The company, represented by Niall Buckley, petitioned the High Court for the appointments on the grounds that it was the only alternative open to the company, given its financial dependence on the parent company.
It is anticipated that all the contracts it was working on will come to an end and most if not all of the company’s employees will be made redundant.
Following the parent firm’s decision to enter administration, steps will be needed to secure the group’s assets in different jurisdictions in which its subsidiaries have been operating.
The Irish company’s current creditors include its own shareholder, which is owed €7 million by way of intracompany loans; Revenue, which is owed more than €600,000; and trade creditors, who are owed €139,000.
Given the close relationship between the Irish company and its Scottish-based parent, it is in the best interests of all the parties that joint provisional liquidators, who are based in the two locations, are put in place to help ensure there is an orderly winding up of the business, counsel said.
The matter will return before the court in December.
