Fleming Construction under threat after court rejects restructuring plan

THE future of one of the country’s largest building groups is under threat following the decision by the Supreme Court to reject a restructuring plan.

The decision by the five judges will result in the loss of more than 100 jobs at the Cork-based Fleming Construction Group.

It comes on foot of an appeal taken last year by Dutch-owned ACC Bank against the High Court’s ruling in relation to John J Fleming Construction, JJ Fleming Holdings and Tivway. They collectively have debts of over €1 billion, including €260 million owed to Anglo Irish Bank. A statement issued on behalf of Mr Fleming said he was very disappointed. He said despite a huge effort from all involved in the company, including staff and creditors, the actions of ACC Bank in opposing the restructuring plan would result in job losses.

Mr Fleming said he wished to thank all of his staff, suppliers and all those who have dealt with his company. He said many of them came from the west Cork region and had worked loyally and dedicatedly with him over the last 35 years. He said everything had been done to save the company and protect as many jobs as possible.

ACC Bank, which triggered Fleming’s loss of court protection, was owed ‘just’ €22m, and started lending to Fleming about two years ago. Fleming’s three other banks (AIB, Bank of Scotland, and Anglo Irish Bank), and hundreds of other creditors, all had supported the High Court approved rescue plan agreed in November.

The 35-year-old widely diversified construction group employed up to 500 people, and up to 300 in Cork, and Mr Fleming’s personal vision in building and promoting the West Cork Business and Technology Park at Clonakilty has been a solid base there for over 1,000 jobs. By this week, the numbers in Flemings construction wing were put at just 137.

Local politicians and community leaders expressed concern at yesterday’s ruling. Former Fianna Fáil minister Joe Walsh paid tribute to Mr Fleming and said the decision was a major blow to west Cork.

Fine Gael councillor John O’Sullivan, from Courtmacsherry, also expressed dismay at the Supreme Court decision. “It is a great disappointment for the workers and locality in general,” he said, lamenting what he described as the major human dimension to the ruling.