High Court Appoints Joint Provisional Liquidators for Glenbeigh Construction Amid Financial Woes
The High Court has taken the decision to appoint joint provisional liquidators to Glenbeigh Construction Limited, a company currently engaged in significant projects at Dublin Airport, prisons, and a large-scale apartment construction in South Dublin.
Insolvency practitioners Dessie Morrow and Diarmaid Guthrie from Azets Ireland have been appointed as the joint provisional liquidators for Glenbeigh Construction Limited, which directly employs 33 people and engages numerous subcontractors.
The decision to wind up the company was based on its insolvency, as it is unable to meet its financial obligations, having recently faced substantial losses. Ross Gorman BL, representing the firm, stated that the company incurred losses due to project delays caused by the COVID-19 pandemic, negatively impacting its cash flow.
Glenbeigh Construction Limited is currently involved in six active projects, including a €36 million development at Dundrum Town Centre, construction works at Arbour Hill and Mountjoy Prisons, Terminal One at Dublin Airport, Northbank House in Dublin city center, and Clarehaven & Seanchara Nursing Home.
The losses were exacerbated by the company’s involvement in fixed-price contracts, several of which have become loss-making due to increased labor and building material costs in recent years.
One specific project in Killiney, South Co Dublin, which was expected to yield a €1 million profit, is now anticipated to incur a loss of €1.2 million due to delays and cost inflation.
Concerns about the company’s financial troubles led to creditors demanding payments at various project sites, with some attempting to take possession of the company’s assets. In light of these challenges and unsuccessful attempts to secure additional investment, Glenbeigh Construction Limited opted for liquidation.
Mr. Justice Mark Sanfey, presiding over the case, expressed the importance of an orderly winding-up process and the protection of the company’s assets for the benefit of all creditors and employees. The appointment of joint provisional liquidators aims to secure these interests.
The court adjourned the matter to a future date in February for further proceedings.
