Survival Scheme for Building Firm Mac Interiors Meets Resistance from Revenue

Earlier this year, the company specializing in office fit-outs received court protection from creditors. Kieran Wallace, of Interpath Advisory, was appointed as the firm’s examiner.

On Wednesday, Mr Wallace’s lawyers asked Mr Justice Michael Quinn to formally approve the scheme of arrangement he had created, which was already agreed upon by most of the company’s creditors. Approval of the scheme would allow the company to exit the examinership and continue operating.

However, the Revenue, which is owed over €13m in ‘warehoused’ taxes, opposes the application on legal grounds. They claim that the examiner’s proposed scheme incorrectly classified certain creditors.

James Doherty SC, representing the examiner, denies any flaws in the proposed scheme and questions why the Revenue has chosen to oppose it. He argues that all creditors will benefit more under the plan compared to the company being declared bankrupt.

The proposed plan’s approval would not only benefit the company but also have a positive impact on the wider economy and revenue. The hearing will continue and resume on Thursday.

According to previous court hearings, the company had been successful in Ireland, the UK, and continental Europe, serving clients such as Microsoft, AIB, Ryanair, Pinterest, Barclays Bank, and Citibank.

However, the pandemic restrictions on construction and subsequent inflation of construction materials severely affected the company. It also sustained significant losses from a project in Liverpool, England.

Despite having ongoing projects, the company, which now has 31 full-time employees due to layoffs, is projected to have a €9 million deficit.

The court also heard that the company has up to 1200 subcontractors employed on various projects.

Reference

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