Deal saves 11 jobs at cultural consultancy

ELEVEN JOBS at an archaeological and historical consultation service provider have been preserved after the High Court approved…

ELEVEN JOBS at an archaeological and historical consultation service provider have been preserved after the High Court approved a scheme of arrangement with the firm’s creditors.

The court was informed the firm has changed its business model and will focus on teaching archaeology to students. It will concentrate on high value consultancy services and small scale projects, as opposed to large scale projects it had previously undertaken.

Mr Justice Peter Charleton said he was satisfied to confirm a scheme of arrangement allowing Cultural Resources Development Services Ltd (CRDS) to come out of examinership and continue to trade as a going concern.

Ross O’Gorman, for the company, said under the scheme most creditors will receive between 10 and 15 per cent of what they are owed. A majority of the firm’s creditors had supported the scheme. Counsel said in the event of a liquidation many of the creditors would get nothing.

READ MORE

Mark O’Mahoney, for Revenue, owed more than €130,000, said his clients were neither supporting nor opposing the scheme, but were unhappy with how the scheme proposed to deal with the debt due to Revenue.

Counsel said that as super preferential creditor, Revenue should have been paid the full amount in one payment. Under the scheme it would at first receive 30 per cent of what was owed, with the rest paid over several years.

CRDS serviced the National Roads Authority, Railway Procurement Agency, the Heritage Council and local authorities by investigating archaeological sites potentially affected by developments such as motorways.

It got into financial difficulties when the economic downturn affected large scale road projects.

As of April 30th last the company, on a going concern basis, had a deficit of €895,000. On a liquidation basis that deficit would rise to at least €1.15 million. Earlier this year it sought court protection after it became insolvent.