High Court paves way for Siac rescue
Creditors share €7.7 million in agreement set to save 200 jobs
Siac is taking legal action against Polish national roads authority GDDKiA that could yield €113 million. Photograph: Dara Mac Dónaill/The Irish Times
Mr Justice Peter Kelly yesterday gave final approval for a rescue plan that involves investors putting €10.5 million into the construction and engineering group, which last October was placed under High Court protection owing €26 million to trade creditors and €42 million to three banks.
Under the plan, proposed by High Court-appointed examiner Michael McAteer of Grant Thornton, €7.7 million of the €10.5 million will be used to pay creditors, with €5 million of that going to those with secured liabilities.
Preferential creditors will receive 10 per cent of what is due to them and those with unsecured debts will get 5 per cent.
The group will be split in two, a debt-free operating business into which the investors are putting their cash, and a property holding business that will be liable for about €38 million in secured bank debt.
Siac is taking legal action against Polish national roads authority GDDKiA that could yield €113 million. According to a statement from Siac yesterday, 30 per cent of net recoveries from that will be used to reduce the haircut imposed on creditors.