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.

Rossa Fanning, for NAMA, said this was the first petition for examinership involving NAMA and it was opposing it because a large write-down of the debts of the companies’ secured creditors was being proposed.

Irish Cement Ltd, owed €4m of a total €10m due to unsecured creditors and Lagan Cement, owed €383,000, are also opposing examinership. The Revenue, owed €641,000, has adopted a neutral position.

John Breslin, for Lagan, said it has brought a petition to wind up Whelan’s Limestone Quarries Ltd (WLQL), the “engine company” of the group, and that petition has been adjourned to December 13.

Mr Justice Brian McGovern yesterday adjourned the hearing of the examinership petition to Friday to allow the companies time to reply to the issues raised.

The five companies are Whelan Group (Ennis) Ltd (WGEL); Whelans Limestone Quarries (Contracts) Ltd (WLQCL); Whelans Limestone Quarries Ltd (WLQL); Whelans Quarries (Carrigtwohill) Ltd (WQCL); and Shannon Explosives Ltd (SEL). WLQL is the principal trading company in the group and the financial survival of the other companies is dependent on the survival of WLQL.

The Whelan group dates back to 1972 when Patrick Whelan founded WLQL. The group grew substantially over the past decades but the directors said it was affected in recent years by the severe contraction in the construction industry, the funding crisis in the country, and an unsuccessful investment and trading involvement with Uniform Construction Ltd, the main contractor on the Limerick drainage scheme.