Irishenco, the construction company which collapsed last month with the loss of 250 jobs has debts of almost £12 million. The bulk of this money is owed to unsecured creditors, according to a Statement of Affairs which was furnished at a creditors' meeting in Dublin yesterday.

The biggest creditors are unsecured trade creditors who are owed £6.4 million, the Revenue Commissioners who are owed £1.5 million and another unsecured creditor, Darya Paye, which is also owed £1.5 million. Darya Paye is a company linked to Mr Mehdi Kashani, an Iranian who was a 50 per cent shareholder and an investor in Irishenco.

The company's estimated assets to meet the liabilities of £11.6 million is just £6 million, leaving a deficit of £5.4 million. Mr Liam Dowdall of BDO Simpson Xavier was appointed liquidator.

Irishenco was involved in a number of high-profile schemes including construction on the Rathcoole Interchange on the Naas Road and a drainage scheme in Wexford.

Since secured creditors are owed £1.8 million and preferential creditors are owed £2 million, there is expected to be little available to meet the liabilities of unsecured creditors. The statement of affairs shows that the company is due income of £4.7 million for contracts, work in progress and inter-company loans. In addition, it shows an estimated realisable value on assets of £1.2 million, mainly plant and equipment. Before liquidator's expenses, there is unlikely to be more than 28p in the pound available to pay unsecured creditors.

At a stormy meeting of around 200 creditors yesterday, many of those owed monies by the company blamed its management for tendering too low for contracts. Veterans of such meetings said they had never seen such a long creditors list. The list ran to 13 typed A4 pages.

A company called Peter Bennie Ltd is owed £250,000 and a company called Posford Duvivier is owed £203,000. Readymix (Dublin) is owed £236,000 while Kilsaran Concrete is owed £178,000. Two Roadstone companies are owed around £260,000. Asset International Ltd is owed £174,000, a Brendan Mulgrew is owed £172,000. Quickfix Formwork Ltd is owed £172,000. A company called A.M.A Ltd is owed £96,500.

J Ryan Haulage Ltd is owed £85,000.

Well-known solicitor, Mr Gerald Kean - who is owed £75,000 - helped to run yesterday's meeting. He was on the board of Irishenco Holdings at one stage, representing Mr Kashani's interests on the board. Creditors said it was the smaller suppliers who would be hit hardest. One creditor accused the company of carrying on trading "even though you knew it was dodgy". Mr Eric Fleming, of SIPTU's construction division, condemned Enterprise and Employment Minister Ms Harney. He said she had shown no interest in trying to save the company and jobs, even though the company was in the heart of her constituency.

Irishenco managing director, Mr Bill O'Regan who took over the position last November told creditors that the company had experienced a series of problems with contracts and business dealings.

He said Irishenco had set up a building division in 1992 and had closed it down in 1995, after it ran up debts of £2 million. In 1993 it had bought plant and equipment in a liquidation sale which was in poor condition for which it had paid inflated prices. This had caused a further £2 million in losses.

In 1994 it had won the Wexford main drainage project which was valued at £9 million. There had been delays in starting the work which had caused serious cashflow problems. Between 1994 and 1996 its income from this contract should have been £7 million, he said, but it had received just £3 million. It had received compensation, but had still incurred an £800,000 loss on the project.

Mr O'Regan said there had been serious problems with certification and there had been contract disputes on the Saggart/Rathcoole project, which was worth £7 million. The matter has since gone to arbitration for hearing.

Mr O'Regan said the investor (Mr Kashani) had continued to guarantee the company's cash flow, but had withdrawn his support in the last four weeks. Irishenco had no overdraft facilities, according to Mr O'Regan. The company had examined the options and decided liquidation was the only route possible.

The managing director of Irish Fencing, Mr Terry Hobdell - a creditor - said the company was in trouble because it had been tendering too low. One tender, he said had been 22 per cent lower than its nearest rival. "There isn't a 22 per cent profit margin in this business," he said. "What were you thinking of?"

Mr O'Regan agreed that low tendering was a problem in the industry. He said it put pressure on the contractors who also experienced difficulties getting paid from local authorities. However, Mr Hobdell said it was the suppliers to the contractors who had been bankrolling the contractors. Other angry suppliers agreed and said it was time they all got together and told big contractors they were no longer prepared to be the last to get paid, provoking loud applause from the assembled creditors.

The government of St Helina is owed £57,500; Howley Civil Engineering is owed £37,300; Irish Shell is owed £36,000; Irish Fencing is owed £31,000.

Unsecured creditors include former Irishenco directors' pension claims of £230,000.

There is also a legal dispute between Irishenco and a company called Verona Holdings over an alleged £1 million debt which Irishenco says that company owes it. Verona is a company controlled by former Irishenco directors, according to Mr O'Regan. This was disputed by a solicitor representing Verona.