Provisional liquidator appointed to mechanical engineering company in Dublin
The High Court has appointed a provisional liquidator to a Dublin-based mechanical engineering subcontractor that employs more than 160 people.
Mr Justice Leonie Reynolds appointed Mr Nicholas O'Dwyer as provisional liquidator to Haughton and Young Ltd, which provides mechanical engineering services to construction industry.
The firm had carried out works at dozens of well known projects including Croke Park Stadium, Google's Irish Headquarters and Twitter's HQ in Dublin.
The company which was founded in the late 1990s and is based at The Business Centre, Stadium Business Park, Ballycoolin Road, Dublin 11, had been profitable for many years.
However it started to sustain losses from 2018 onwards, and is now insolvent.
The losses came about to factors including increased competition in the sector, and because it was not paid the full amount of monies it was due on certain projects on which it had carried out works.
Moving the petition to wind up the company Brian Conroy Bl, who represented the firm's main shareholders, said the appointment of a provisional liquidator was urgent.
Counsel told the court that representatives of the company's creditors had attended at its premises this morning and were refusing to leave unless their demands were met.
Counsel said there were concerns that the company's assets, which includes a large number of vehicles, may be taken by creditors.
The appointment of a provisional liquidator would ensure that the company's assets are preserved and then distributed for the benefit of all the creditors in an orderly manner, counsel said.
Counsel said the company had been successful for much of its existence. It had up until recently employed more than 200 people.
In 2018 and 2019 the company's losses began to mount, and it started to experience cash flow difficulties.
The board had made attempts to take steps to address its financial problems, had sought fresh investment in the business and last year it had to let some of its staff go.
However it was not possible to secure the company's future and the vast majority of the firm's shareholders were supporting an application for the appointment of a provisional liquidator, counsel.
Ms Justice Reynolds said she was satisfied to appoint Mr O'Dwyer of the accountancy firm Grant Thornton as the company's provisional liquidator, and granted him certain powers.
The judge adjourned the matter to a date in early March.
