This group of companies consisted of two trading companies and two holding companies. The trade of the companies was a mechanical engineering company and the installation of pre-insulated and pre-pack panels of ducting. The two other companies in the group acted as shareholder for the group and with the other holding intellectual property rights for its products.
The companies traded profitably for a number of years up until 2016 when it started to experience difficulties. As with any contracting company the loss on specific contracts precipitated the companies’ insolvency. Other issues faced by the company were:
- Cash flow problems
- Threat of winding up orders from trade creditors insurers
- Delay in securing investment
- Loss of key management
The key risk for the companies when entering the examinership process was the loss or cancellation of contracts as a result of seeking the protection of the Court. However, the appointed Examiner, Mr Neil Hughes, was successful in negotiating with the companies’ clients to ensure the continued operation of all contracts the companies were engaged on with the exception of one. This contract was onerous and loss making and as a result of the scaling back of this contract during the examinership the companies were able to focus their resources on more profitable contracts to ensure the survival of the companies.
The examiner was successful in obtaining new investment and formulating a scheme of arrangement which resulted in the saving of over 70 jobs in the West of Ireland.
