Nautic Building Company Faces Liquidation, Leaving Creditors in the Lurch with Over €5.2 Million Debt
Nautic Building Company, an established construction firm in Co Limerick, has faced financial collapse, leading to its liquidation with debts exceeding €5.2 million. Founded in 1981, the company, headed by directors like Jason Quirke, saw Deloitte’s Andrew Byrne and James Anderson appointed as liquidators following a contentious creditors’ meeting at The Southcourt Hotel, Raheen.
The financial troubles involve liabilities of over €5.2 million, including €4.28 million in trade payables, a €196,600 debt to Revenue, and claims from 21 employees amounting to more than €288,500. Despite the company’s assets being valued at over €4.2 million, the estimated realization is only €2.27 million, resulting in a substantial net deficiency exceeding €2.93 million.
During the creditors’ meeting, tension prevailed, and subcontractors expressed grievances about the owed amounts, raising concerns about potential financial strain on businesses. The company’s involvement in significant 2023 projects, including a housing development in Castleconnell, Murroe Wood Community Centre, and a private project, contributed to profitability challenges and working capital difficulties.
Nautic Building Company’s financial turmoil aligns with the broader trend in the construction sector, which saw a surge in insolvencies in 2023. The industry recorded 89 insolvencies, a 62% increase from the previous year’s 55 cases, as reported by Deloitte Ireland. Escalating materials costs was identified as a key challenge, contributing to a 25% rise in corporate insolvencies nationwide in 2023, the highest level since 2018. The services sector was the hardest hit, with 261 insolvencies, followed by hospitality with 99 cases, reflecting the challenging business landscape across various industries in Ireland.
Source: The Irish Independent
