No rescue plan for McInerney
A SYNDICATE of banks intends to have a receiver appointed to one of the country's well-known house builders after the High Court refused to approve a rescue plan for two firms in the McInerney construction group.
Mr Justice Frank Clarke said he was refusing to confirm the scheme of arrangement, which would allow the firms to continue to trade, because it was "unfairly prejudicial" to a syndicate of three creditor banks, Anglo Irish Bank, KBC and Bank of Ireland.
The examiner, William O'Riordan, had asked the court to approve the rescue plan for both McInerney Homes Ltd and McInerney Contracting Ltd, which are largely involved in house building to come out of examinership and continue to trade.
The banking syndicate, who are owed more than €110m by McInerney, had opposed the application to have the scheme approved by the court. They claimed the plan amounted to a significant write-down of the debt owed to them and that they would do better if a receiver was appointed to the firms.
The judge added yesterday that he was satisfied from the evidence that the banks had "a realistic prospect of doing better" if a receiver were appointed. Following the judgment, counsel for the banks indicated their intention to have a receiver appointed to the firms. The judge agreed to continue court protection for the relevant companies to later this week in order to allow the relevant parties to consider his judgment.