Westbury takeover concerns as Clare builder enters

HUNDREDS of residents in one of the largest housing estates in South-East Clare could be left in limbo if a well-known Clare house-building firm goes into liquidation.

Last week, the High Court appointed an interim examiner to house building firm McInerney Homes and several related companies after being informed that an independent accountant’s report revealed the firms have a reasonable prospect of survival.
In seeking the protection of the courts against creditors, the group claimed that it is suffering cash flow problems because the National Assets Management Agency (NAMA) directed its banks to cancel their overdraft.
The group has debts of around €200m and has been in talks with its Irish and UK banks since last year.
Councillor Pascal Fitzgerald hoped McInerney Homes would secure protection from the High Court to ensure its survival. However, he said residents in the Westbury Housing Estate could be left in limbo waiting for Clare County Council to take the estate in charge, if the company went into liquidation.
He noted the council had previously stated it wasn’t interested in taking over the estate on a piece-by-piece basis.
Considering Chieftain Construction has constructed almost half of the houses in the estate, Councillor Fitzgerald warned this could present difficulties for the council trying to deal with McInerney Homes if it went into liquidation and Chieftain Construction, which is still trading.
He noted a number of outstanding issues such as tree pruning, public lighting and road surface upgrading still had to be fully completed by McInerney Homes before the council could take this portion of the estate in charge.
“I don’t want to see a situation where residents in Westbury are left in limbo if McInerney Homes go into liquidation. If this happens, it is up to Clare County Council to finish off the work and take over the estate.
“If the Limerick local government report recommends that Shannon Banks and Westbury should come under the jurisdiction of Limerick City, I hope that Clare County Council wouldn’t put the takeover of the Westbury Housing Estate on the long finger,” he said.
Councillor Cathal Crowe said he would like to see the company continue operating in a viable financial capacity.
For the September meeting of Clare County Council, the Fianna Fáil councillor said he would raise the issue of the taking in charge of Westbury with the county manager, Tom Coughlan and seek an update on its current status.
He claimed he will also ask the manager if sufficient bonds are in place in the event that McInerney Homes go into liquidation.
“The McInerney brand is synonymous with quality built homes. As a home-grown County Clare company, they have been to the fore in creating local jobs for more than a century. This now hangs in the balance pending the outcome of their High Court case in two weeks time. The fact that a company so large and reputable as McInerney Homes is now going through the rigours of an examinership is testament to the difficult economic times we are in.
“I hope that the taking-in-charge of the Westbury Housing Estate will continue to progress.
“Clare County Council’s planning department also need to proactively engage with the company in order to advance the taking-in-charge process,” he added.
Senior executive engineer, Seán Lenihan told The Clare Champion he didn’t know whether the company’s current financial difficulties would impact on the taking in the charge of the Westbury estate, as the council would have to await the outcome of the next High Court proceedings.
“My experience with the company has been favourable. The taking in charge process is ongoing. The council will take over this estate once all the outstanding matters are dealt with.
“One of the biggest issues was the provision of a sewage treatment plant, which has been completed. The council will not apply standards that apply today to an estate built I the early nineties,” he said.