A WEST CORK solicitor yesterday pleaded for the High Court to help save 117 jobs in the John J Fleming Construction company, which is seeking protection through examinership.
“Most of them live throughout the west Cork area and particularly in Bandon, which is an area where the prospect of alternative employment is not great,” Ted Hallisey told Mr Justice Daniel O’Keeffe.
Mr Hallisey, of solicitors PJ O’Driscoll in Bandon, said he also represented 111 unsecured creditors, most of whom were from Cork and he had been instructed to support the application for examinership.
George Maloney, who was appointed examiner of Tivway, another Fleming group company, in July is asking the High Court to appoint him as examiner for JJ Fleming Holdings and John J Fleming Construction Company.
Barrister Rossa Fanning told the court that ACCBank, which is owed €21.5 million, was opposed to the appointment of an examiner and he will address Judge O’Keeffe with legal submissions today. The judge is expected to reserve his judgment.
Erik Gottenbos, asset management team leader, with ACCBank, told the court yesterday that the intention of Mr Maloney’s application was to achieve a “cram-down” of the liabilities of Holdings and Construction to ACCBank rather than to facilitate the survival of ongoing businesses of the companies. He said he was also deeply concerned that a proposed hive down of the alleged profitable part of the business of Construction into a separate company would prejudice a number of creditors of Construction, including ACC.
“No financial information is provided for any of the shareholders, a serious omission in the context of considering the financial position and solvency of an unlimited company,” he said.
Mr Gottenbos said no explanation had been given by Mr Maloney as to how the proposed examinership would facilitate the survival of Tivway. An independent accountant’s report demonstrated that Holdings had no basis for survival as a going concern and was unsuitable for examinership.
The independent accountant suggested a scheme with group creditors would suffice to ensure the survival of Holdings, ignoring the current liability due to ACCBank.
