A receiver has been appointed to Newcourt Group, which is involved in businesses such as security and recruitment and employs 3,200 people. But the move is not expected to immediately affect trading in its businesses.
This morning, Newcourt said it had asked Bank of Ireland to appoint a receiver. The company has been in talks about its debt, having breached some of its lending deals with the bank.
Newcourt said it had completed a review of the options available to it, and had as a result invited BoI to appoint a receiver. This afternoon, David Carson of Deloitte was named as receiver.
'The board believes that this action will enable Newcourt's subsidiaries - including Federal Security Group, Acuman Facilities Management, Lenmac Mechanical Services, Ecom Interaction and the Sigmar recruitment companies - to continue to trade normally and they are not expected to be immediately affected by this process,' a statement said.
As a result of the move,. trading in Newcourt's shares has been suspended on Dublin's IEX and London's AIM stock markets.
Last month, Newcourt said the managing director of its recruitment subsidiary Sigmar had indicated that he is looking at buying some or all of its businesses. Newcourt said no talks had taken place with Adrian McGennis on the possible terms of any offer.
Last last year, the three founders of Newcourt scrapped plans to make a buy-out offer for the company. The three - chief executive Ted O'Neill and directors Hugh O'Neill and Phil Sykes - received permission from the board in October to seek funding for a proposed offer.
