An interim examiner has been appointed to commercial interior fit-out contractor Sonica.
Ken Fennell, partner and head of restructuring with Deloitte will act as examiner.
The company, which is based in Dublin, petitioned the High Court for the apointment of an examiner after the a combination of the effects of Covid-19 and a disputed payment that is the subject of legal action in Germany left its cashflow "significantly eroded".
The disputed payments relate to a project completed in February for a US-multinational that has a final account claim in dispute due to Covid-related overruns on Sonica’s subcontractors.
“Unfortunately, due to the knock-on effects of Covid on our international supply partners we have been unexpectedly faced with a large, disputed payment. This issue, which is the subject of litigation in Germany, coupled with recent large-scale investment in the business and Covid impacts have left the cashflow position of the company significantly eroded,” a spokesman for the company said.
“The company has taken appropriate decisions and actions to ensure the continued sustainability and future growth of the organisation and subject to court approval, we believe that Sonica’s current cash position, strong project pipeline and projections will allow Sonica to exit this process swiftly and continue its strong growth journey.”
Founded by Donnacha Neary in 2013, Sonica has worked with companies such as Guinness Storehouse, Sherry Fitzgerald, Intercom, Huawei and GlaxoSmithKline.
The company’s most recently filed accounts show its earnings before interest, tax, depreciation and amortisation was €962,438 in the year ended April 30th 2021.
That fell from €2.1 million a year earlier as restrictions imposed to curtail the spread of Covid-19 hit the business. Pretax profit was €760,740, down from almost €2.1 million in the prior year.
The company employed 55 people at the end of April, 2021, including its two directors.
