Provisional liquidator appointed to quarry firm

The High Court has approved the appointment of a provisional liquidator to a quarrying firm with 45 employees which is part of the Hanly group of companies.

Today Ms Justice Mary Laffoy said she was satisfied to appoint chartered accountant Mr Tom Kavanagh of Kavanagh Farrell as provisional liquidator to Hanly Brothers Ltd, which, operates a quarry in Elphin, Co Roscommon.

The judge made the appointment after being informed that the firm is unable to pay its debts as they fall due.

The court heard that on a winding up basis the creditors face a deficit of more than €29m.

The firm's main creditors include Anglo Irish Bank which is owed €25.5m, and the Revenue Commissioners. The company is a subsidiary of Laragan (Holdings) Ltd which is part of the Hanly group of construction and quarrying companies.

Bernard Dunleavy Bl for the company said that due to its liabilities the members of the company passed a resolution this week seeking to have the company wound up and have a liquidator appointed.

Counsel said that while the company was "hopelessly insolvent" largely due to its debts to Anglo, the firm's core business was in a reasonable state and represented a reasonable asset that could be sold off.

Counsel said that as part of the appointment of a provisional liquidator it was important that the quarry's environmental obligations be maintained.

Counsel said that it was essential that during the winding up process that steps be taken to ensure that wasterwater from the quarry is managed and monitored daily to ensure there is no risk to a nearby water reservoir which services some 7,000 people.

In an affidavit to the court company director Joseph Albert Hanly, Laragan Lodge, Laragan Co Roscommon said that every effort was made to ensure the survival of the business, however it was decided that it was not viable for the company to trade.

Other directors in the firm include Mr Hanly's son Alan and Padraig Hanly. The company with a registered address at Laragan, Drummullin Elphin Co Roscommon has carried out quarrying at the site since 1972.

It provided materials mainly to local authorities and contractors in counties Roscommon, Longford, Leitrim. At is peak in 2007 it employed some 125 people and had a turnover of more than €17m.

Since then the firm has seen its turnover drop by 50% per year. Turnover for the current year is at €3m which represents a loss of €315,000. The court heard that the company is no longer able to pay the costs of leasing heavy machinery it requires to operate the quarry.