The High Court has indicated it will not approve a survival scheme for construction company MAC Interiors Limited, which has been under examinership.
Revenue, which is owed over €13 million in warehoused taxes, opposed the application on legal grounds.
It claims certain creditors were not correctly classified in the examiner’s proposed scheme.
On Thursday Mr Justice Michael Quinn indicated he agreed with Revenue’s argument regarding the classification of creditors and he that believes the court does not have the jurisdiction to approve the proposed survival scheme.
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However, the judge said he will give his full decision on the application in the coming days.
In a statement, the company’s chief executive Paul McKenna said the company is “shocked and disappointed” by the judge’s decision. He said it will wait for publication of the full decision before deciding its next steps.
Earlier this year the company, which specialises in office fit-outs, was granted the court’s protection from its creditors, and Interpath Advisory’s Kieran Wallace was appointed as examiner.
Mr Wallace had denied the proposed scheme was flawed.
The examiner said he could not understand why Revenue has opted to oppose the scheme. All of the creditors will fare better under the plan than if the company was adjudicated bankrupt.
The examiner also argued there was a clear benefit to the wider economy as well as Revenue if the survival plan is approved.
The court heard previously that the firm had traded successfully in Ireland, Britain and continental Europe, with clients including Microsoft, AIB, Ryanair, Pinterest, Barclays and Citibank.
However, it was badly affected by pandemic restrictions curbing construction and subsequent inflation on construction materials.
It also sustained significant losses from its involvement in a project in Liverpool, England.
The company has 31 full-time employees and up to 1,200 people hired as subcontractors on various projects.
