Construction firm folds with debts of €3.5m

A CONSTRUCTION company, which at its height employed upwards of 100 people, has gone into receivership with debts of nearly €3.5 million.

Pat O’Brien Developments Ltd, a County Cork-based builders, went into liquidation three days ago, owing money to more than 200 creditors.

The company, which was founded on July 6, 2004, had offices in Carrigtwohill and most of its projects were concentrated in the East Cork area. Between direct and indirect labour it employed more than 100 people.

At a meeting of creditors, which took place in the Vienna Woods Hotel, Glanmire, on August 8, Barry Donoghue was appointed as liquidator and will now try and recover as much money as he can to pay off the long list of creditors, which includes builders providers, tool hire companies, transportation firms and the Construction Industry Federation (CIF). The latter are owed €68,131 and appear just outside the top 10 list of creditors.

Pat O’Brien Snr is owned the most with €356,358 outstanding, followed by Owers Electrical at €258,475. The list of creditors, which the Irish Examiner obtained through a third party and not through the liquidator, shows that most are concentrated within the Munster area.

The liquidator, Barry Donoghue, said yesterday that 206 creditors were involved and that they were owed a total of €3,491,539.

However, he added that four further claims were in dispute, totalling approximately €920,000.

Pat O’Brien Developments Ltd is understood to have accepted some elements of these claims.

Mr Donoghue said he would now have to realise assets the company had and try to match them with creditors’ claims.

The creditors have selected a five-person committee to represent them and they will liaise directly with the liquidator. “They will receive [progress] reports and have meetings with me,” Mr Donoghue said.

The liquidator added that debts owed to such building companies don’t get collected overnight. So, Mr Donoghue said it “could take some time” to finalise the liquidation.

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