Delighted to hear this news as it ties in with my earlier posts!
The next step is for the liquidator to dispose of the assets of the company and to carry out an investigation of the directors and report to the Office of the Director of Corporate Enforcement within 6 months.
The problem is that many Examinserships are often pre planned and the Examiner who should be an officer of the court is providing a service to the company in Examinership. If Laragan is one of these schemes, I would not hold my breath as to any significant outcome of an investigation seeing as the examiner will be the liquidator.
Would the Liquidator not be someone different altogether?
Hi Jack -
Can you explain - "If Laragan is one of these schemes"?
Would the High Court appoint Mr. Paul McCann as the Liquidator who was also the Examiner for Laragan Developments Ltd?
Do I have the following correct -
How would one person be able to do both jobs? Surely it would be a different person.
- The role of the Examiner is to assist a company through a difficult trading period
- The role of a Liquidator is focused on the Creditors?
Jack this result will go back to the section 17 protection offered by the holding company. With luck the liquidator hat will ensure that the digging is done deeply and a far better result will come to the benefit of the deposit holders and trade creditors a like.
It will be great to see the ODCE get involved as they had no interest in complaints made prior to the examinership regarding the behaviour of the company directors.
The possibility of proof of reckless trading and trading while insolvent will also come to light over the next couple of months.
What are the implications for buyers with contracts now that Laragan Developments LTD will be liquidated? Will the liquidator enforce contracts for all Blocks A - D?
Or the fact that Mr. Justice Clarke said that Deposit Holders and Creditors have been treated unfairly by Laragan Developments LTD - are contracts void now?
How could the liquidator enforce contracts for A: apartments that were not built and b : would have been way over their completion time
I do not know if the liquidator can sell the contracts to a third party but it is possible that the liquidator could determine that it is in the best interest of the creditors and arrange to have the houses completed knowing that there are about 100 contracts that if completed will give a higher profit than current prices.
A property company, the collapse of which led to the loss of deposits for 95 homebuyers, has been put into temporary liquidation by the High Court.
Link to Story - http://www.rte.ie/news/2009/0717/laragan.html
What is meant by temporary liquidation?
I read this posting on another website - I think this is accurate because the Condition 5 mentioned below is in the contracts. This means that all the buyers in Milners Square and Carrickmines will not be held to their contracts. I think the fact that most of the Blocks in Milners Square are also not started - means that the Liquidator will not be able to get any monetary value from the contracts etc..
So for people in Block's A - D the Milners Square situation has come to an end - the only issue outstanding is how the Liquidation process will go and the possibility of achieving some proportion of a refund of our Deposits. But this is probably very unlikely now with the size of the Debts of Laragan Developments Ltd to the different Trade Creditors etc.
And it now seems that this Liquidation process could take more than a year!
"The standard practice when buying a new property from a developer was/is to purchase by way of a contract and a building agreement. Effectively a contract for the site and a buidling agreement for the property to be built. In the building agreement the builder is called the contractor and the purchaser is called the employer.
The contract and building agreement are the standard documents and clause 5 of the building agreement states:
If the Contractor should be adjudged bankrupt or, being a company enter into liquidation (other than for the purpose of reconstruction or amalgamation) or if a receiver shall be appointed or if the Contractor shall enter into an arrangement with or for the benefit of his creditors or become unable or refuse or neglect to carry out and complete the Works, the Employer may determine this Agreement by notice in writing to the Contractor or his assignee or liquidator or receiver.......
So pretty much any purchasers who don't wish to complete should hope that the developer goes into liquidation."
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