HOWLEY LIQUIDATION:A BID to save Howley Civil Engineering, one of Ireland's biggest earth-moving contractors with 430 staff, has failed, the High Court was told yesterday.
The Cork firm, which went into examinership at the start of June, has been involved in major projects including the M3 motorway and the redevelopment of Lansdowne Road stadium.
Yesterday John Breslin, counsel for High Court appointed examiner Brian McEnery, told Mr Justice Éamon de Valera he had been unable to secure any investment in the company, which employs 430 people.
Mr Breslin said it had become apparent to Mr McEnery there was no prospect of investment to allow him to piece together a scheme of arrangement to rescue the company. A group of individuals within the company had investigated investing in the company but had withdrawn their interest, as had another party on Tuesday.
He said Mr McEnery was applying to the court for directions and he felt the only option now was an order winding up the company. There was a possibility, if news of the winding up got out, that some creditors might attempt to take over some of the assets of the company. Mr McEnery was granted leave of the court to take all steps necessary to secure sites where assets remained.
Howley Civil Engineering, of Rossmore, Carrigtwohill, Co Cork, had turnover of €37 million in the year to the end of June 2006 and made an operating profit of €1.9 million. At that time, it had retained profits of €7.9 million but had net debt of €7.2 million.
The High Court had heard that the firm was insolvent. Equipment firm Caterpillar and AIB Finance were its largest creditors and were owed €5.5 million and €3 million respectively. Unsecured creditors include Topaz Energy and machinery sales firm Embankment.
The court heard that Howley Civil Engineering had been affected by the slowdown in the construction sector.
Last June it was listed among tax defaulters who had made settlements with the Revenue Commissioners, paying out €3.17 million.
A court order appointing Mr McEnery liquidator to the company and a related equipment leasing firm, Jenthorn, was made by Judge de Valera. The directors of both companies are Michael Howley and Verona McCabe.
