Homebuilding companies – involved in building houses in Tipp – placed under review

Two construction companies involved in the construction of rural housing have obtained court protection against their creditors.

Trinity Homes Ltd (THL) and a related company, Yeronga Ltd, are involved in the construction of new housing units primarily in rural Ireland, including Wexford, Tipperary, Kerry and Meath.

Many units were built for the local authorities. The company also built units for the Cluid housing association.

However, the two companies, created in 2014, are currently insolvent and unable to pay their debts as they fall due.

The companies say their difficulties were caused by factors such as the delay caused by the closure of construction sites due to the Covid19 pandemic, an increase in the cost of construction materials, and an inability to meet scheduled loan repayments that they were making. have been granted.

Another cause of the difficulties arises from an arrangement to buy the shares of a former director of THL for € 3M.

It is admitted that as part of this deal more than € 900,000 of THL money was paid to the former director.

The court heard that THL accepts that this payment, which was made because THL did not have sufficient distributable reserves, violates company law and will need to be investigated.

The court heard that the main source of business funding came from the Immigrant Investment Program, where non-EEA citizens pledging sums of over one million euros for three years that are invested in Ireland.

People who invest in this program can obtain residency in Ireland and ultimately Irish citizenship.

The companies, which had been profitable between 2015 and 2019, had borrowed more than € 11 million thanks to this program.
The directors of THL are Stephen Mahon, who is also a 75% shareholder, and Ecaterina Olaru, both of Quarrylands Dunboyne Co Meath and Ben Reid of Navan Road Dublin.

Mr. Mahon and Ms. Olaru are directors of Yeronga.

Requests for companies to be reviewed, on the grounds that companies have a reasonable prospect of survival if certain measures are taken, were submitted to the High Court and Circuit Court last week.

The companies, represented by John O’Donnell SC, Ross Gorman Bl, appointed by lawyer Graham Kenny, successfully applied to the Circuit Court for the appointment of the experienced insolvency practitioner, Mr. John Walsh, as ‘interim examiner.

Separately, two firms that represent the companies’ foreign investors have asked the High Court to appoint another insolvency practitioner as THL’s interim reviewer.

The two entities, Project Trinity Homes Ltd and Project Trinity Homes 2 Ltd, which are represented by John Kennedy SC, are indebted to the company for a total amount of 9 million euros.

They say they have concerns about the operation of construction companies and want an investigation to be carried out.

That request was submitted to Judge John Quinn last week, who declined to appoint an interim reviewer on an ex parte basis.
However, the judge gave some directions in the case and adjourned the case.

When the case returned to Judge Quinn on Wednesday, lawyers for the companies and creditors debated which tribunal should be considered.

However, following sometimes sustained exchanges between the lawyers of the parties, the parties entered into amicable discussions.

As a result of those talks, it was agreed that the case should return to Circuit Court later this week.

It was further anticipated that the request for review before the High Court would ultimately be struck out.

Source link

About admin

Check Also

Uttarakhand village slips downhill due to road construction and soil weakening, geologists warn

Nearly 200 villages in Dharchula and Munsyari sub-divisions are located on debris (representation) Pithoragarh, Uttarakhand: …

Leave a Reply

Your email address will not be published. Required fields are marked *