McINERNEY HOLDINGS is set to consider a rebel shareholder’s proposal to remove the company’s board at a formal meeting.

McInerney’s Irish business is waiting for the Supreme Court to rule on a rescue plan for that division, while its British and Spanish operations have been sold and the proceeds used to pay off creditors.

Corporate financier David Nabarro, who acquired 21.45 per cent of McInerney in May, wants to call an extraordinary general meeting (egm) of the company to propose sacking its current board.

McInerney chairman Ned Sullivan has written to Mr Nabarro to confirm the company will hold the meeting to allow shareholders to vote on his proposal. Mr Nabarro’s brokers, Bermayne Bentley, formally requested the meeting, and the company is obliged to hold it.

McInerney’s chief financial officer and acting chief executive Enda Cunningham has also written to Mr Nabarro offering to brief him on the company’s financial state.

Last week, Mr Sullivan wrote to shareholders saying that, at an egm on July 29th, the board will propose placing the plc – the housebuilder’s parent – in voluntary liquidation.

The letter points out that the board and its advisers believe they have no choice, and states that no equity value remains in the stock-exchange listed company. Both meetings will be held separately.

Mr Nabarro held an informal meeting for McInerney shareholders in Dublin yesterday that was attended by 17 people.

He told The Irish Timesthat he believes shareholders will vote against the board's proposal to place the plc in voluntary liquidation, and that they are likely to support his motion. He believes shareholders can regain some value from the plc and the group.

Mr Nabarro acquired his shares as a result of the unwinding of contracts for difference held by businessman Seán Quinn. He paid nothing other than a broker’s fee to acquire this interest.

McInerney’s Irish business owes three banks – Anglo Irish, Bank of Ireland and KBC – €113 million. The rescue plan hinges on a new investor, Oaktree Capital, paying €25 million in full satisfaction of this debt, which is secured against company assets.

In addition, it owes another group of creditors, who rank immediately behind the banks, €40 million. Any effort to revive the business requires a settlement with both sets of creditors. If the court rules in favour of the existing rescue plan, Oaktree will acquire the Irish business and its assets.