Interim examiner appointed to construction firm Pierse

The High Court has appointed an interim examiner to one of the State's largest construction firms Pierse Contracting after being informed that an independent accountant's report has revealed the firm has a reasonable prospect of survival.

Mr Justice Brian McGovern this evening said he was satisfied to appoint chartered accountant Mr John McStay as interim examiner to Pierse Contracting and Pierse Building Services which is involved in the fitting out and refurbishing of premises for blue chip clients.

The firms which employed 700 at their peak and now have 211 employees, cited the economic downturn and cash flow difficulties caused by bad debts of approximately €30m on completed works as the reasons why it has sought the protection of the courts.

The Judge made the matter returnable to later this month.

Moving the petition on behalf of the companies, Rossa Fanning BL said that an independent accountant's report said it believes that the company has a reasonable prospect of survival as going concerns if certain steps are taken. These include getting acceptance from the High Court of an appropriate scheme of arrangement by the creditors and member of the company.

The firms also require an investment of funds that would supports its future working capital requirements, the continued cooperation of its key suppliers and contractors, and an agreement with NAMA of any proposals put forward in respect on ensuring the two firms survival.

Pierse has been involved in a number of major construction projects including Dublin Civic offices, the British Embassy, the Conrad and Carton House Hotels, Jervis Shopping Centre and several buildings in the Dublin Docklands. It has also been involved in several public private partnerships such as the contracts of schools, hospitals, and government buildings.