Liquidator appointed to electrical contractor by High Court

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The High Court has appointed an interim liquidator of an electricity company which has more than 50 people working on various projects.

he order was placed with NSR Engineering Ltd, whose financial difficulties were largely caused by the impact of the Covid-19 pandemic on the sector, and the significant increases in the costs of obtaining materials .

Mrs Justice Carmel Stewart has appointed insolvency practitioner John Healy of Kirby Healy as the company’s provisional liquidator, with an address registered at Kinseally Business Park in County Dublin, after being satisfied the company was insolvent and unable to pay his debts.

The judge was also convinced that it was in the interest of all parties involved, including the company‘s creditors, that Mr Healy be appointed as provisional liquidator.

The company, represented yesterday in court by Brian Walker Bl mandated by lawyer Tom Casey, says it is insolvent for approximately €800,000.

Mr Walker said that although the company had valuable contracts worth around €15.6m, it was struggling with cash flow.

The lawyer said that since the start of 2020 the Covid-19 pandemic has had an “extreme effect on the business”.

Its workers and subcontractors were unable to complete the work due to the long confinement.

In addition, the costs of materials such as copper and steel products have increased by 20% to 30%, the lawyer added.

This increase in costs could not be passed on to clients on the projects for which it had tendered.

He also had to withdraw from other projects that were no longer viable, the lawyer said.

The lawyer added that the company owes 1.1 million euros in revenue, which it does not have the ability to pay.

He was also unable to repay his debts to his creditors and his suppliers were seeking payment on delivery. Commercial creditors owe some €650,000.

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