High Court rejects McInerney rescue plan

One of Ireland’s oldest homebuilders McInerney is to go into receivership.

Five months after it went into examinership, the High Court today rejected a €48m rescue plan for the companies that recently employed around 100 people.

The Court found that the proposed rescue package is unreasonably skewed against its banking creditors, which are owed €113m.

Under the deal put forward by an examiner appointed to the companies, new US investors Oaktree Capital would pay the banking syndicate a total of just €25m.

The banks opposed the scheme as unfair and argued that in a receivership they could recover three times that amount as part of an 11-year plan.

Mr Justice Frank Clarke concluded that there was a credible basis for the bankers' view and receivers are set to be appointed this Friday.