Eleven jobs saved as arrangement with creditors approved
Eleven jobs at a archaeological and historical consultation service provider have been preserved after the High Court gave its' approval to a scheme of arrangement with the firm's creditors.
The court was informed that the firm has changed its business model and will focus on teaching archaeology to students and will concentrate on high-value consultancy services and small scale projects as opposed to large scale projects it had previously undertaken.
Today at the High Court Mr Justice Peter Charleton said that he was satisfied to confirm a scheme of arrangement that allows Cultural Resource Development Resource Services come out of examinership and continue to trade as a going concern.
The Judge also noted that firm's examiner, Mr Neil Hughes, was satisfied that the implementation of the scheme would allow the company to survive, which was in the best interests of the firm's creditors, and preserve the jobs of the employees.
Ross O'Gorman Bl for the company said that under the scheme most of the creditors will receive between 15% and 10% of what they are owed. A majority of the firm's creditors had supported the scheme.
Counsel said that in the event of a liquidation many of the creditors would get nothing.
However, Mark O'Mahoney Bl for Revenue, who were owed more than €130,000 by the firm, said that his clients were neither supporting nor opposing the scheme, but were unhappy with how the scheme proposed to deal with the debt due to Revenue.
Counsel said that as super preferential creditor Revenue should have been paid the full amount it was owed in one payment.
However, under the terms of the scheme it would receive 30% of what it was owed with the remainder being paid over a period of several years.
While that was most unsatisfactory from Revenue's prospective the preservation of the 11 jobs was extremely important.
The company provided services to bodies including the National Roads Authority, Railway Procurement Agency, The Heritage Council and various local authorities, by carrying out investigations on archaeological sites potentially impacted by developments such as motorways.
It worked on a number of road projects, including the N2 Finglas to Asbourne and N6 Galway to Ballinasloe projects and had been profitable. However it got into financial difficulties when the economic downturn affected large scale road projects.
As of April 30 last the company, on a going concern basis, had a deficit of €895,000.
On a liquidation basis that deficit would increase to at least €1.15m. Earlier this year it sought the protection of the courts after it became insolvent and unable to pay it's debts.
The company was founded in 1999 and its directors are Dr Stephen Mandal Grosvenor Terrace, Monkstown, Dublin, and Finola O'Carroll, Greenanstown, Stamullen Co Meath.
