Re: Re: Pierse Construction in Liquidation
Tragedy my arse……… PVC, that post of yours is like the ones Brian O’H. used to write extolling the virtues of Zoe. ;).
You will note from the Garathace love in thread I did not join in the we love the convayer belt of lego-brick apartments afflicting BAC albeit that the Dungloe House acquisition provided the operation with sharp cookies on the property side. However one suspects that the collapse of Zoe along with other large Nama held portfolios has created significant systemic contagion that spread from land speculation into the construction industry.
Pierse has gone under with a deficit in excess of Euro200 million, of which more than 25% (>50 million) is due to ordinary trade creditors. That means that the knock-on effect will further add to the woes of those creditors – most already overstretched – and will hasten their demise. The size of the deficit would suggest to any financier ‘trading while insolvent,’ particularly when one looks at the amount of intercompany debt. I wonder where all that money went…… K.
One can only speculate that the lack of clarity in the how and when the development pipeline of half completed schemes was going to be handled created difficulty for construction firms in knowing which assurances from developers would be honoured and which wouldn’t.
I will rephrase my original point, if this happened in 2006 it would have been shocking and considered by most commentators to be a tragedy; events since that date have obviously numbed sentiment significantly; no doubt the true course of events will come out in the fullness of time but until they do I think it is fair to afford one of the big 4 construction firms the benefit of the doubt on their probably believing some of the assurances they were receiving which turned out not to have been honoured; I strongly hope that the contagion from this collapse is manageable and does not trigger another wave of defaults at subbie and professional levels.
A very slow motion trainwreck has hopefully now come to a halt