High Court asked to approve survival scheme for Mac Interiors
High Court reporters
The High Court has been asked to approve a survival scheme for construction company MAC Interiors Limited, despite opposition from the Revenue Commissioners.
Earlier this year, the company, which specialises in office fit outs, was granted the court’s protection from its creditors, and Kieran Wallace, of Interpath Advisory, was appointed as the firm's examiner.
On Wednesday, lawyers representing Mr Wallace, who put together a scheme that has been agreed by a majority of the company's creditors, have asked Mr Justice Michael Quinn to formally approve the scheme. This would allow the firm exit examinership and continue as a going concern.
However, Revenue, which the court heard is owed over €13 million in 'warehoused' taxes, has opposed the application on legal grounds. It claims that certain creditors were not correctly classified in the examiner's proposed scheme.
James Doherty SC, for the examiner, who denies that the proposed scheme is flawed, says it does not understand why Revenue has opted to oppose the scheme and said all the creditors will fare better under the plan compared to if the company was to be adjudicated bankrupt.
There was, counsel said, a clear benefit to the wider economy, as well as Revenue if the survival plan is approved.
The hearing continues and will resume on Thursday.
The court previously heard the firm had traded very successfully in Ireland, the UK and continental Europe, with clients including Microsoft, AIB, Ryanair, Pinterest, Barclays Bank and Citibank.
However, it was badly affected by the Covid pandemic, with restrictions curbing construction, and the subsequent inflation on construction materials. It also sustained significant losses from its involvement in a project in Liverpool, England.
While it has ongoing projects, the company, which has 31 full-time employees following layoffs, has a projected deficit of about €9 million.
The court also heard the company has up to 1,200 people hired as subcontractors on various projects in which it is involved.