Re: Re: Pierse Construction in Liquidation
@PVC King wrote:
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
I don’t agree PVC. When a firm goes tits up owing that amount of money, I see no reason to be ‘fair’ when the facts remain hidden/disguised. The trainwreck has not come to a halt, it is inexorably grinding its way along a broken track and a ravine with no bridge is ahead of it. The rescue train with its IMF crane is building up steam in a neighbouring station….
According to todayâ€™s media reports McNamara is supposedly about to go the receivership route â€“ work has stopped on all its projects.
More than a year ago I wrote :-
When NAMA gets going we will see the start of the shake-out. Most of the contractors I have seen recently could not be classed as viable. The big guys will be defunct and will bring many more with them. The efficacy of personal guarantees will prove almost worthless, key assets will be unreachable and expensive homes will be in wivesâ€™ names. Then the subbies and suppliers will discover that they never will be paid for their debts. Their accountants will not sign off on y/e figures, or balance sheet valuations, so a lot more will fail. A contributory factor will be lack of finance due to the opaqueness of the financials, where lenders will mistrust the stated values of fixed assets and the real or true worth of the applicant’s debtors.
It was in post number 159 here https://archiseek.com/content/showthread.php?p=99988#post99988