New investment in SIAC paves the way for recovery
The Feighery family, the majority shareholders of SIAC Holdings Ltd, together with CEO Martin Maher, senior management, and other investors have agreed with Michael McAteer the Court appointed Examiner to rescue the SIAC Construction group of companies.
They are supported by former CEO Finn Lyden, Colas Teoranto and Ducales Trading No 2 Ltd a private family investment company from Northern Ireland.
Schemes of Arrangement provide for the operating businesses to be separated from the investment and property companies.
The new investment will be in the trading businesses and is conditional on the Examiner’s Scheme of Arrangement being approved by the Creditors and by the High Court.
The major part of the new investment will be to provide a debt free balance sheet for the operating companies. Part will be used to pay creditors under the Scheme of Arrangement. All liabilities of the companies of whatever kind at 23rd October 2013 are dealt with in the Examiner’s Scheme of Arrangement.
The Scheme also provides an incentivised structure for SIAC to pursue the Polish authorities for the severe damage inflicted to SIAC’s business and consequently to creditors. Under the Examiner’s Scheme 30% of net recoveries from Poland will be used to reduce the shortfall of agreed creditors resulting from the Examinership. These recoveries will be split 20% for agreed unsecured creditors of SIAC Construction Ltd and 10% to the property companies that are liable for the secured bank debt. Creditor meetings are expected to be convened for the 27th of January next.
Martin Maher CEO said that
“ I am relieved that subject to Creditor and Court Approval the SIAC Group established in 1913 can once again strive to be a leading Irish Construction business. I would like to thank our creditors, clients, partners and employees for the patience and support that they have shown during this process and hope that the Scheme structure provided will in some way negate the difficulties experienced by the Company’s creditors and preserve a significant number of jobs “