Liquidator looks at suing firm over bid advice

THE liquidator of Coveney Engineering, Carrigaline, Co Cork, a light engineering company, may take legal action against the company…

THE liquidator of Coveney Engineering, Carrigaline, Co Cork, a light engineering company, may take legal action against the company's British based advisers.

The company went into liquidation last month, owing more than £470,000, after substantial cost over runs on a project to construct a new steel gangway at Holyhead port in Wales for Stena Sealink.

Mr Sean Flynn, of Fitzsimons Flynn in Cork, is now taking legal advice on whether the company can take an action against Transmarine Ltd, the British firm whose advice was used by Coveney in costing the job. Transmarine is a creditor of the company, claiming £60,000.

The dispute is likely to proceed to arbitration, according to Mr Flynn, who said he was in the process of consulting a committee of creditors on whether to proceed.

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Coveney Engineering was established 17 years ago by Mr Maurice Coveney and employed 47 people when it closed.

The company had employed up to 100 people depending on the amount of work it had on its books according to Mr Flynn.

Mr Coveney is not related to Mr Hugh Coveney, the Fine Gael, Minister of State responsible for the Office of Public Works, who has a quantity surveying practice in Cork.

The largest creditor of the company is the Revenue Commissioners, who are owned £116,000, and an associate company called IMC which was owned £113,000 and has also collapsed. A number of steel companies are owed money, including the Steel Company of Ireland, which was owed £70,000.