An insolvent concrete and quarrying company is to go into receivership after efforts to come up with a survival plan failed, the High Court has been told.
Carlow-based Dan Morrissey Irl Ltd – where 16 workers won almost €19 million on the Lotto six years ago – had last month obtained a court order removing bank-appointed receivers and appointing an interim examiner so restructuring efforts aimed at saving the company and 131 jobs could be made.
AIB, owed some €27 million, had appointed joint receivers but, after those were removed by the court and an examiner appointed, said it would provisionally not oppose the examiner's efforts to come up with a survival plan.
Yesterday, examiner Brian McEnery said in an affidavit AIB had said it was no longer prepared to provide the necessary finance for a viable survival arrangement. In those circumstances, Mr McEnery said he could not recommend the examinership period be further extended.
Mr Justice Peter Kelly said this was "an unfortunate situation" and there was no criticism of AIB, or of Bank of Ireland, which had offered some finance to restructure the existing debt.
As AIB was not prepared to accept the latest proposals, the judge agreed to an application from Rossa Fanning BL, for AIB, to have the examiner discharged and the original receivers reinstated.
When Lyndon MacCann SC, for the examiner, said it was hoped there would be a trading receivership so as many jobs as possible could be saved, Mr Fanning said he wished to make clear this would "not necessarily" be a "trading" receivership but an ordinary receivership.
Bernard Dunleavy BL, for the company, said this was disappointing and “hard news” from the point of view of the company, its shareholders and employees, but they accepted the examiner had done his best.
The court previously heard that it was hoped a survival plan could be prepared given the serious fiscal and social repercussions liquidation of the company would have in the entire south-east, not just from the loss of 131 jobs but also the loss of work for 80 subcontractors.
