THE HIGH Court has appointed an examiner to a Cork civil engineering company on the basis of reports indicating it has a reasonable prospect of survival as a going concern. Ms Justice Mary Finlay Geoghegan appointed Brian McEnery as examiner to Howley Civil Engineering Ltd, Carrigtwohil, which employs 430 people.
The company had applied to the court earlier this month for the appointment of Mr McEnery as interim examiner to allow restructuring to take place.
The case came back before Ms Justice Finlay Geoghegan yesterday when she appointed Mr McEnery as examiner.
The court had heard previously from counsel for the company that it was engaged in significant contracts and it was important these be completed to ensure their value.
The judge was told the company was insolvent and unable to pay its debts due to several factors, including the slowdown in the construction sector and additional costs on motorway and retail projects, but that its directors believed it had very good trading prospects.
The directors and an independent accountant believed that if certain conditions were met, including a refinancing package or investment, it had a reasonable prospect of survival. Examinership was more in creditors' interest than a winding-up, the company said. Among the largest creditors are Caterpillar Financial Services Ireland plc, which is owed €5.5 million, AIB Finance and Leasing, owed €3 million and the Revenue Commissioners.
