A large Dublin engineering firm has gone into liquidation with multi-million euro debts and the loss of 140 jobs, as the downturn in the construction sector continues to bite.

A provisional liquidator has been appointed to Elenco Engineering, which has been trading since 1971 and has worked on major projects. The firm experienced a dramatic decline in business in recent months, leading to cash flow difficulties.

The company racked up losses of €1.3million on a number of recent projects, and has a deficiency of between €2.5 million and €3 million.

The directors of Elenco last week petitioned the High Court to put the company into liquidation.

Declan Taite, a partner with accountancy firm FGS, has been appointed provisional liquidator. The full petition will be heard early next month.

In a statement, FGS said Taite would ‘‘immediately commence a review of the company’s books and records, and will engage with all creditors and stakeholders to determine the affairs of the company and assess its future viability’’.

The majority of the company’s 140 staff have already been laid off, although a number of core staff have been retained to help the provisional liquidator assess the company’s position. Elenco was working on 40 construction and building sites around the country.

In recent years, the company has worked on projects including Killeen Castle resort in Co Meath, St James’s Hospital in Dublin and the Gate Theatre.

In a petition to the court, the directors of Elenco said the firm had suffered from the recent downturn in the economy, and had also experienced difficulty collecting payments.

New government tendering regulations had also led to a decrease in the company’s work. The company cited cutbacks in government spending on capital projects such as schools, which had previously been a source of income for Elenco.


See Original Article

Call now for help with corporate debt.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk