Creditors vote 94% in favour of Supple rescue deal

CREDITORS at a troubled Cork construction company have voted overwhelmingly in favour of accepting a rescue package, which will see them receiving 75c in the €1 of their debt.

More than 300 representatives of the 263 creditors of John F Supple Ltd assembled at a Cork city hotel yesterday to hear a presentation on the estimated €14 million that was owed to them.

The biggest creditor, John A Wood, was owed as much as €750,000 and the top 10 were owed an average of €250,000.

Anyone owed less than €10,000 would be paid off with the full amount.

During the two and a half hour meeting a number of questions were put to the company, including several from creditors questioning the amount of money which was actually owed to them and others seeking clarification on where the money in the rescue package would originate.

The creditors were told a percentage of the money to be paid to them will come from the sale of properties which the company has in Bulgaria as well as a number of other sources.

They were also told that a number of company directors had been supporting it from their own pockets in recent days.

The package which they voted on entails creditors receiving 25% of the monies owned to them within 30 days of court approval of the scheme.

A second payment of 25% would then be made 365 days after the court approval and the final 25% would be paid “in the event the company can afford to do so” bringing total payment to unsecured creditors to 75%.

The trigger for the third payment was to be when the net assets of the company exceeded €5.6m.

In advance of the meeting and as it was proceeding, the majority of the creditors appeared willing to accept the proposal because as one man put it “It is better to vote in favour of some money than risk receiving none at all.”

However, it is understood a number of the larger creditors were fearful that to accept the package might lead to other companies in difficulty following suit.

Their fears appeared to be put aside because when the proposal was put to the ballot — the creditors voted 94% in favour. It will now be brought before the High Court on October 28 and if will decide whether to activate the package.

If the court agrees, the first payment must be made within 30 days of that ruling.

In a statement, John F Supple Ltd said it was very grateful to its suppliers and creditors for the confidence they have shown in the company.