MOST FLEMING building group creditors support the rescue plan that will be submitted to the High Court for approval next Tuesday.
Accountant George Maloney of Baker Tilly Ryan Glennon, who was appointed examiner to the group last July, is due to put a rescue plan involving a new investor to the High Court for its approval on Tuesday.
The Cork-based group has total debts of €1 billion and has been under the court’s protection since August, when ACCBank sought the repayment of €21.5 million.
It is understood the majority of its creditors are backing Mr Maloney’s rescue plan, known as a scheme of arrangement. That includes unsecured creditors, who may have to write off part of their debts.
The plan involves a new investor, Donbar, putting €4 billion into a new company. It will take over much of the group. Its bankers will lend further sums to this vehicle, and it will create a series of reserve funds which will be used to pay off creditors over 10 years.
One of Fleming’s biggest projects is a large site in Sandyford, Co Dublin, where it is working on a mixed commercial and residential development.
The most significant of any opposition is ACCBank, which originally opposed placing the group under court protection and appointing an examiner.
The Dutch-owned bank has been pursuing a number of developers for loans, including Liam Carroll’s Zoe group, which ultimately failed in its bid to be placed in examinership and is now in receivership.
In contrast, Fleming, which is advised by Dublin law firm, Matheson Ormsby Prentice, succeeded in being placed in examinership. Tuesday’s bid for court approval for the examiner’s rescue plan is the final hurdle faced by Fleming.
Creditors can have such plans overturned if they can show the court that the scheme unfairly prejudices their interests, and that they would fare better in either a liquidation or a receivership.
ACC has already argued to the High Court that Mr Maloney wrongly classified the bank as a contingent creditor rather than a unsecured creditor.
As a contingent creditor, it will not be repaid under 2020, whereas unsecured creditors will receive 25 per cent of their debts in December.
