High Court paves way for Siac rescue

The High Court has paved the way for existing shareholders the Feighery family and new backers Ducales Trading and Colas to rescue troubled building group Siac, saving about 200 jobs.

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.

Unsecured debts

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.