Creditors lose €9m in firm’s collapse

PREFERENTIAL and unsecured creditors owed over €9 million by collapsed architectural firm, Murray O’Laoire Architects are unlikely to receive any of their money.

That is according to liquidator of the award-winning firm Brian McEnery who confirmed yesterday that the Revenue Commissioners alone are owed in excess €3m, describing the liability as “enormous”.

Mr McEnery confirmed that “employee entitlements” and local authority rates are amongst the preferential creditors owed a total of €2.75m.

The firm — whose projects included the award-winning Thomond Park stadium design — went into liquidation last year with the loss of 100 jobs at three offices in Ireland and seven abroad.

The firm operated for 31 years and was insolvent to the extent of €9m and now, in a ‘General Liquidation Update’ filed with the Companies Office, Mr McEnery confirms that in the expected outcome of the liquidation, unsecured creditors owed a total of €6.68m, and the preferential creditors will receive nothing from the liquidation.

He said yesterday: “The assets didn’t realise what was anticipated by the directors in the statement of affairs and this is why it is unlikely there will be any dividend.”

Mr McEnery of Howarth Bastow Charleton said that AIB Commercial Services Ltd is the company’s only secured creditor, but is likely to receive only 42% or €471,547 of the €1.13m due.

The NAMA board member confirmed that there is likely to be insufficient funds to pay his own firm’s liquidation fees. The liquidator has to date received fees of €128,819, excluding VAT.

He writes: “We currently have accumulated unbilled work in progress of €157,000 . . . It is anticipated that remaining potential realisations is likely to only go part of the way to paying the outstanding fees.”

The company’s statement of affairs estimated that there was €1.1m to be recoverable from debtors. However, only €447,961 in debtors’ payments have been received by the liquidator. The liquidation update states: “Debtors’ realisation has been difficult due to unfinished works, extra costs to clients due to liquidation, disputes, counter claims, lack of run-off cover in place, legal cases and companies in the industry that themselves are in difficulty.”

Appointed liquidator in April of last year, Mr McEnery also stated that issues surrounding the company’s treatment of VAT, required the liquidator to undertake a detailed VAT audit dating back to 2008.

He said that his investigation of the company’s VAT liability will form part of the liquidator’s report to the Office of the Director of Corporate Enforcement (ODCE).