The High Court has appointed joint provisional liquidators to a building company currently carrying out works at Dublin Airport, at two prisons and on a project where more than 100 new apartments are being built in south Dublin.
Insolvency practitioners Dessie Morrow and Diarmaid Guthrie, of Azets Ireland, were appointed as provisional liquidators of Glenbeigh Construction Limited, which employs 33 people directly as well as engaging the services of many more subcontractors.
Ross Gorman BL, instructed by Crowley Millar solicitors, for the firm, said it was being wound up because it is no longer solvent and is unable to pay its debts as they fall due, having recently suffered significant losses.
The company has six active projects, including one at Dundrum Town Centre where it is the main contractor on a €36 million project to build more than 100 apartments.
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It is also carrying out works at Arbour Hill and Mountjoy Prisons, Dublin Airport, Northbank House in Dublin city centre and Clarehaven & Seanchara Nursing Home.
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The losses were incurred because several projects it was involved in were delayed due to the pandemic, resulting in a negative impact on its cash flow position.
The firm had also entered into several fixed-price contracts that are now loss-making due to the inflation of labour and building material costs.
The company said it has been working on a project to build 49 units in Killiney, south Co Dublin, which was due to be completed in 2022. It has experienced difficulties on the site.
The tender price for that project was €13 million, with the company anticipating a €1 million profit.
However, due to delays and cost inflation, it now anticipates losing €1.2 million on the project.
Counsel said court-appointed liquidators are required to secure the firm’s assets and ensure an orderly winding up.
Word had spread about the firm’s difficulties and creditors have been turning up at sites and demanding payments, with some attempting to take possession of the firm’s assets, it was claimed.
The company looked at all other restructuring options but decided to enter liquidation after failing to secure enough investment to return to solvency.
The matter on Tuesday came before Mr Justice Mark Sanfey, who was satisfied to appoint the joint provisional liquidators to the company.
In his ruling, the judge noted the company was involved in several ongoing projects.
He said it was important the firm’s winding up is conducted in an orderly fashion and that the joint provisional liquidators take steps to secure the company’s assets for the benefit of all creditors and employees.
The matter was adjourned to a date in February.
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