Provisional liquidators have been appointed by the High Court to a Cork-based building firm that owes Nama more than €71m.
Yesterday, National Assets Loan Management Ltd (NALM), a company of Nama, asked Mr Justice Paul Gilligan to appoint joint provisional liquidators to ensure an orderly winding up of O’Brien and O’Flynn Ltd, building contractors, of Doughcloyne House, Vicars Road, Cork. The company’s directors are brothers Dan and Denis O’Flynn.
The court heard the company owes Nama €71.2m with assets worth less than half that amount. The court heard the debt to Nama arose after it took over loans advanced to the company by Bank of Ireland and AIB in 2010 and 2008.
Robert Fitzpatrick BL, for NALM, said appointment of liquidators to what was an insolvent firm would not just be “in the interests of the taxpayer and Nama” but also “creditors of the company”.
Counsel also told the court that there was some urgency in the application because NALM had concerns assets might be dissipated unless liquidators were appointed. Counsel said the company was insolvent on both a balance sheet and a cash-flow basis.
Mr Fitzpatrick said in recent years the company survived due to funding from Nama and rents from certain property assets. That funding had dried up and Nama was no longer providing financial support.
Counsel said NALM became concerned about the involvement of a third party in efforts to restructure the company.
He said NALM had concerns about the proceeds of sale of one of the company’s property assets. Nama says that the proceeds, thought to be €1.3m, should go towards paying off what it is owed.
Mr Justice Paul Gilligan said he was satisfied to appoint John McStay and Tom Rogers of insolvency practitioners McStay Looby as provision liquidators.
The matter was adjourned to a date next month.
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