High Court Court appoints examiner to west of Ireland firm

A High Court judge has appointed an interim examiner to a west of Ireland construction firm that employs 150 people.

Mr Justice Peter Kelly today said he was happy to appoint chartered accountant Mr Tom Kavanagh as examiner to Treform Ltd, with a registered office at Church Road, Moycullen Co Galway as he was satisfied that the company had a reasonable prospect of survival.

Mr Justice Kelly told the court that examinership would be more advantageous for both the company's creditors and the employees.

Mr Justice Kelly was told court that the company, building sub contractors who specialise in formwork, concrete placing and re-enforcement, had traded successfully for 22 years.

It was solvent until it got into difficulties with building contractors JJ Rhattigan & Co over money they say they are owed over a contract to carry out works on the Athlone Shopping Centre.

The company claims that there is a current shortfall in payment due to it for that project of €1.574m, and said that a claims consultant has been recently appointed.

After the company got into difficulty an independent accountant report was commissioned. The company said that its' balance sheet has a current deficiency of assets over liabilities of €2.45m.

That amount does not include the sums it claims it is owed from the Athlone contract, which it commenced in February 2006.

The company's main creditors include the revenue commissioners and AIB bank. If the company was to be wound up there would be a deficiency of more than €5m.

The court was told that company is well known in the building and architectural trade, and had a good reputation for being able to complete complex work on budget and on time.

It has done work for most of the country's major building contractors.

It has worked on major projects such as Marine Institute, the Civic Museum in Galway, the UL Concert Hall in Limerick, as well several hotels and shopping centres in the West and South of Ireland.

The directors of the company believe that the company has good prospects.

The court was told that if it were to survive as a going concern the directors were proposing to downsize the workforce.

Subject to an agreement with the examiner the Directors and others were willing to invest significant sums in the company.

The company would continue with its' current contracts and is due to start more contracts in 2008.