Seven in race to buy SIAC

There are seven credible interested parties in the race to acquire the construction firm, SIAC, through the examinership process, according to people familiar with the situation.

The bidders will be required to inject between €5m-€8m into the firm. All seven potential bidders have the financial resources to make the investment, according to sources.

It is believed that all parties involved in the examinership process are trying to get a deal in place before the Christmas break. However, the prospects of agreeing a deal before this deadline are seen at about 50:50, according to sources.

The 100-year-old construction firm was forced to apply for examinership on Oct 23 following a number of years of difficult trading conditions in the Irish market and heavy losses incurred through road building projects in Poland that ran into legal trouble.

Highlighting the scale of the downturn in the company’s fortunes, its turnover fell from €265m in 2008 to €113m in 2012. Trade creditors are owed €26.1m and current liabilities stand at €4.5m. There are other liabilities totalling €24.7m. Polish creditors have outstanding claims of €7.4m.

There are nine companies in the SIAC group, which between them employ 250. They owe their banks a total of €42m.

The nine companies are SIAC Construction Ltd; SIAC Holdings Ltd; SIAC Holdings (Ireland) Ltd; SIAC Bituminous Products Ltd; SIAC Butlers Steel Ltd; Lilymount Ltd; SIAC (Clondalkin) Ltd; SIAC Baldonnell Ltd and SIAC Property Retailers Ltd.