NAMA opposes examinership for Whelan Group companies

THE National Assets Management Agency is opposing the appointment of an examiner to five companies in the Whelan Group, one of the largest concrete products suppliers in the country employing 120 people. The High Court will hear the petition for examinership on Friday.

NAMA has taken over some €50 million debts owed to Anglo Irish Bank by the Whelan companies and is opposing examinership because of a proposed large write-down of the debts of secured creditors. Anglo was the largest secured creditor of the group, while Bank of Scotland Ireland is also owed €12m.

The Whelan companies say they have a consolidated deficit of €10m as a going concern rising to about €50m if placed in liquidation. They say, if a survival scheme is approved, including a programme of cost-cutting measures, sale of non-core assets and outside investment, the group could return to profitability next year. Their underlying business is sound and, if examinership is refused, the prospects are “bleak” for creditors and employees.