Court protection withdrawn from Fleming Group

The Supreme Court has withdrawn court protection from the Fleming Construction Group which will now go to the wall with debts of €1bn.

It has overturned a High Court decision appointing an examiner on the basis the proposed scheme does not provide for the survival of each of the companies.

The High Court appointed an examiner last December to try and save the struggling Fleming Group but ACC Bank, which is owed over €21m, appealed to the Supreme Court to get that decision overturned.

ACC argued that the Fleming Group's 10-year survival plan was effectively a personalised NAMA as there was no evidence of future finanical support from the banks.

This, it argued, will leave secured lenders pulling the strings of the property development business which includes the shell of the half-built Sentinel building in Sandyford, Co Dublin.

In her judgment Ms Justice Susan Denham seems to have agreed, concluding that it is entirely understandable that the companies and indeed the banks would wish to retain control in the hope that a rising property market will enable a build out in the future, but she said that is neither the test laid down nor the objective of the legislation

The case will now go back to the High Court for a winding up order to be made.