A company owned by Dublin port chairman Joe Burke, one of the men who loaned €49,500 to Taoiseach Bertie Ahern, is being liquidated with debts of between €900,000 and €1.5 million.
The High Court yesterday ordered that J&H Burke and Son Builders Ltd be wound up and formally appointed Kenneth Fennell of corporate restructuring specialists, Kavanagh Fennell, as liquidator.
The court appointed Mr Fennell on a provisional basis on December 14th last. While a number of creditors were represented in court yesterday, none sought to appoint their own liquidator, and he was formally confirmed in the position.
J&H Burke's liabilities have yet to be finally calculated, but it is understood that the company could owe its creditors between €900,000 and €1.5 million.
Yesterday, Ms Justice Mary Laffoy gave the directors, including Mr Burke himself, 21 days in which to prepare a full statement of affairs. This will detail the liabilities and the assets. The company is also obliged to hold a creditors' meeting.
The biggest creditors are likely to be the Revenue Commissioners, employees and Mr Burke himself, who is thought to be owed between €300,000 and €400,000 by the company.
These are likely to account for half the total liabilities, with trade creditors making up the balance.
Mr Burke is chairman of the Dublin Port Authority and a former Fianna Fáil city councillor. He is close to Mr Ahern and was one of the 12 friends who gave him loans totalling €49,500 during his marriage break-up in the early 1990s.
Mr Burke's company originally specialised in pub refurbishments but began to diversify as that business slowed.
However, many small building firms find it difficult to compete with bigger players in the industry, as they perform contracts for fixed prices, but have to bid low to undercut larger operations with more economic muscle.
Industry figures say that in those circumstances, they can find it difficult to make a profit, while problems and unanticipated difficulties can wipe out any gains they make.
Companies Registration Office (CRO) records show that J&H Burke's owners are Joe and Helen Burke. He is also a director and company secretary. The business is based on North Richmond Street in Dublin.
It was profitable earlier in the decade. Accounts lodged in 2004, the most recent available from the CRO, show that from 2002 to 2003, the accumulated surplus in the profit and loss account grew to €77,292 from €3,657.
Notes to the accounts state that the profit for the year was €73,635.
At the time, it had 16 workers and paid them a total of €860,815 in wages and pension contributions. The accounts show that it had paid all taxes due for the year.
Mr Burke is from the Collins Avenue area of Dublin, and is one of the key members of Mr Ahern's constituency machine. The case is due before the High Court again on February 26th.
