THE NATIONAL Asset Management Agency (Nama) is opposing the appointment of an examiner to five companies in the Whelan Group, one of the largest concrete products suppliers in the country employing 120 people. The High Court will hear the petition for examinership tomorrow.
Nama has taken over some €50 million debts owed to Anglo Irish Bank by the Whelan companies and is opposing examinership because of a proposed large writedown of the debts of secured creditors. Anglo was the largest secured creditor of the group, while Bank of Scotland Ireland is also owed some € 12 million.
The Whelan companies say they have a consolidated deficit of some €10 million as a going concern, rising to about €50 million if placed in liquidation. They say if a survival scheme is approved, including cost-cutting measures, sale of non-core assets and outside investment, the group could return to profitability next year.
They say their underlying business is sound and, if examinership is refused, the prospects are “bleak” for creditors and employees. Rossa Fanning, for Nama, said this was the first petition for examinership involving Nama and it was opposing it because a large writedown of the debts of secured creditors was being proposed.
Irish Cement Ltd, owed €4 million of a total €10 million due to unsecured creditors, and Lagan Cement, owed €383,000, are also opposing examinership. The Revenue Commissioners, owed €641,000, has adopted a neutral position.
John Breslin, for Lagan, said it had brought a petition to wind up Whelan’s Limestone Quarries Ltd, the “engine company” of the group, and that petition has been adjourned to December 13th.
Mr Justice Brian McGovern yesterday adjourned the hearing of the examinership petition to allow the companies needed time to reply to the issues raised by Nama and others. The five companies are: Whelan Group (Ennis) Ltd; Whelans Limestone Quarries (Contracts) Ltd; Whelans Limestone Quarries Ltd; Whelans Quarries (Carrigtwohill) Ltd; and Shannon Explosives Ltd.
Whelans Limestone Quarries Ltd is the principal trading company in the group and the financial survival of the other companies is dependent on its survival. The companies secured protection from the High Court on November 22nd pending the hearing of the petition for examinership.
John O’Donnell SC, for the companies, said Anglo had said it was neutral on the application for court protection and his client was not aware until very recently that Nama was opposing the petition.
In the circumstances where affidavits had to be filed and replied to, it was inevitable the case would have to be adjourned but his side wanted it heard tomorrow, not December 9th or 10th as Nama was suggesting.
