Cork firm with 160 staff to be wound up

A Co Cork mechanical services company with debts of almost €2m and 160 employees is beyond saving, the High Court has been told.

Ms Justice Marie Baker ordered the winding up of Harley Mechanical Services Limited, a company that provided various mechanical services for building contractors.

Harley Mechanical, of Gortanacra, Ballymakeera, Co Cork, had been in examinership since late June after the court had heard that if certain steps were taken the firm had a prospect of survival as a going concern.

It had been hoped the company, set up in 2011, could have been saved through the appointment of an examiner but Judge Baker was told yesterday that the examiner process had failed and there was no option but to have the company wound up.

When the company sought the appointment of an examiner, the High Court was told it had more than €1.8m in trade debts and had got into difficulties after the commencement dates of several contracts had been delayed.

Lawyers for the examiner, insolvency practitioner Aengus Burns, of Grant Thornton, said he was not in a position to put together a scheme of arrangement with the firm’s creditors.

Such a scheme, if approved by the High Court, would have allowed the firm survive as a going concern but despite the examiners best efforts it was in the interest of both the creditors and the public that the firm be wound up, the Judge said.

In the circumstances, the judge said she was appointing Mr Burns as the company’s liquidator.

This was because he had a familiarity and knowledge of the firm given that he had been its examiner for 69 days, she said.

The matter will return before the court next month.