SIAC gets approval to exit examinership, but job loses expected

Friday 14 February 2014 18.21
SIAC's operating businesses will be separated from the investment and property companies
SIAC's operating businesses will be separated from the investment and property companies

Construction firm SIAC Holdings Ltd has received approval from the High Court to exit examinership, but cautioned that it could cut up to 40 jobs as part of a restructuring plan.

The Feighery family - the majority shareholders of the company - together with senior management, Ducales Trading Ltd and Colas Teoranta received the approval earlier today.

Under the examinership's Scheme of Arrangement, the company's operating businesses will be separated from the investment and property companies.

€10.5m will also be invested into its core trading divisions which are made up of civil engineering, bituminous products and roofing and cladding.

A statement from the company said that most of this new investment will be used to provide a debt free balance sheet for the operating companies in the future.

The scheme also provides an incentivised structure for the company to pursue the Polish authorities for the "severe damage" inflicted to SIAC's business and consequently on to creditors.

"I am relieved that the SIAC Group - established in 1913 - can once again strive to be a leading Irish construction business," commented the company's chief executive Martin Maher.

Mr Maher thanked the company's creditors, customers and employees for the support that they have shown. He said he hoped the scheme structure can in some way negate the difficulties experienced by the company's creditors.

Mr Maher also confirmed that a restructuring programme will be implemented, which is expected to result in the loss of 30-40 jobs.

However he added that he hoped job losses "could be kept to a minimum where possible".

SIAC currently employs around 250 people.

He said that SIAC's current pipeline and tendering remains strong for the year ahead.