Interest in troubled building materials group

A number of likely suitors have signalled their interest in building materials manufacturer Dan Morrissey, which is under High Court protection from its creditors.

Mr Justice Peter Kelly yesterday confirmed the appointment of Brian McEnery of BDO as examiner to Carlow-based quarry operator and manufacturer Dan Morrissey Irl Ltd, giving him up to three months to save the business, which owes AIB €26 million.

Mr McEnery gave Justice Kelly a sealed envelope containing the names of a number of potential investors who had signalled to him their interest in backing the business since he was appointed last Friday.

It is understood that the examiner is confident that the company, which has sales in the region of €17 million to €18 million a year, is likely to attract further interest.

Dan Morrissey is a quarrying and building materials business that manufactures concrete, roof tiles, tarmac and other products. It employs 131 people directly and 80 subcontractors.

Mr McEnery said he was confident that the business had a viable future. Along with details of the expressions of interest in the group, the court heard that Bank of Ireland was giving serious consideration to refinancing the company’s debt of €26 million to a manageable level.

Gary McCarthy SC, for the company, said an independent accountant had expressed the opinion that the firm had a reasonable prospect for survival, provided certain conditions were met.

These include shutting down during the quieter winter months of certain quarrying facilities, a stock release programme and additional productivity facilities. Key to this was the restructuring of the debt to about €16 million, Mr McCarthy said.

The company was in the news for a different reason in 2008 where a group of its workers shared a €19 million lottery win.