The High Court has appointed joint provisional liquidators to a building company currently doing works at Dublin Airport, two prisons, and on a project where over 100 new apartments are being built in South Dublin.
Insolvency practitioners Mr Dessie Morrow and Mr Diarmaid Guthrie of Azets Ireland were appointed as the joint provisional liquidators of Glenbeigh Construction Limited, which employs 33 people directly as well as engaging the services of many more subcontractors.
Ross Gorman Bl, instructed by Crowley Millar solicitors, for the firm said the company was being wound up because it is no longer solvent and is unable to pay its debts as they fall due as it has recently suffered significant losses.
The company has six active projects, including one at Dundrum Town Centre where it is the main contractor on a €36 million project involving the construction of over 100 new apartments.
It is also carrying out works at Arbour Hill and Mountjoy Prisons, Terminal One at Dublin Airport, Northbank House in Dublin city centre and at Clarehaven & Seanchara Nursing Home.
The losses were incurred because several projects it was involved with were delayed due to the Covid-19 pandemic, resulting in a negative impact on its cashflow position.
The firm had also entered into several fixed-price contracts.
Due to the increase in costs for labour and building materials in recent years several of those contracts are now loss-making, counsel added.
The company said that it has been working on a project to build 49 units in Killiney, South Co Dublin, which was due to be completed in 2022.
It has experienced difficulties on the site.
The tender price for that project had been €13m, and the company had anticipated making a €1m profit.
However, due to the delays and cost inflation, it anticipates that it will lose €1.2 million on the project.
Counsel said that the court appointed liquidators were required in order to secure the firm's assets and ensure an orderly winding up.
Word had spread about the firm's difficulties and creditors had been turning up at sites, demanding payments, and some had attempted to take possession of the firm's assets, it was claimed.
The company had decided to go into liquidation, after looking at all other restructuring options, and having sought but failing to secure enough additional investment to make the firm solvent.
The matter came before Mr Justice Mark Sanfey on Tuesday who said he was satisfied to appoint the joint provisional liquidators to the company.
In his ruling the judge noted that the company was involved in several on going projects.
He said that it was important the firm's winding be conducted in an orderly fashion, and that the joint liquidators take steps to secure the company's assets for the benefit of all the creditors and the employees.
The matter was adjourned to a date in February.
