Brian Harvey, founder of business support firm Siteserv, will become chairman of Siac, the distressed construction company, once a rescue deal s agreed with its banks.
Mr Harvey has to secure a deal by January 30th, the date Siac's court-ordered bankruptcy protection expires. Siac chief executive Martin Maher will remain in situ following agreement being reached with Siac's three banks – Bank of Ireland, Bank of Scotland Ireland and KBC.
Mr Harvey provided proof to Siac's examiner Grant Thornton before Christmas that he is able to inject €9 million into the company which was founded in 1913 but which went into examinership in October. Grant Thornton reviewed eight potential bidders for the business before selecting the Harvey-led consortium as its preferred option.
Mr Harvey is believed to be backed by a group of high net worth individuals. He is also wealthy, having made several million from the sale of Siteserv to businessman Denis O'Brien in a sale process initiated by the Irish Bank Resolution Corporation, which saw a €90 million debt write-off by the taxpayer-owned bank.
Mr Harvey’s proposal to Siac’s bankers requires the securing of new banking facilities for Siac’s trading business while ring-fencing its property assets into a separate entity. This will allow Siac better to sell down non-core property assets while holding on to core assets like its quarry business. In return, Mr Harvey’s proposal would see Siac’s bank debt of €42 million rolled over and gradually repaid as the company seeks to benefit from Ireland’s improved economic performance.