Bowen firm owed €10m before takeover

BUILDING GROUP Bowen’s British business owed almost €10 million to subcontractors before court-appointed administrators took control of the company, its latest figures show.

State assets agency Nama and the Bank of Ireland appointed Paul McCann of Grant Thornton as receiver to the key Bowen group companies last month on foot of a number of secured debts.

Several weeks earlier, the British high court appointed insolvency specialist Zolfo Cooper as administrators to the group’s London-based arm, Bowen plc, after it emerged that the business could not pay its debts as they fell due.

A statement of affairs prepared by the company’s directors shows that it owed an estimated £8.6 million sterling (€9.8 million) to subcontractors at the end of May.

The figures show there was a shortfall of £5.3 million between the amount due to subcontractors and the amount that it is due to realise from its various projects.

Overall, the directors estimate the company’s assets could realise £5.1 million while its liabilities are £9.3 million.

The administrators confirmed some weeks ago that the company was insolvent and could not meet its liabilities to suppliers and other creditors. Work had been halted on all its contracts. Administrators are appointed under British law to insolvent or troubled companies. Their main role is to maximise returns for creditors.

Bowen plc’s directors include John Bowen, Don Brockie and Barry Crowley. Its most recent accounts show it made a profit of £111,599 on a turnover of £22.3 million in 2009.

The company halted work and laid off its 29 staff in May, shortly after appointing consultants to aid in restructuring the business, which at that point was facing at least one winding-up petition. The British High Court appointed Zolfo Cooper in June.

In Ireland, the company’s problems emerged two weeks ago when the High Court appointed John McStay of McStay Luby as liquidator to Bowen Construction Ltd, the group’s main trading entity. Shortly afterwards, Nama and Bank of Ireland appointed Mr McCann to a number of group entities, including Bowen Construction and Bowen Holdings.

The insolvency resulted in the loss of 76 jobs. Its managing director and biggest shareholder, John Bowen, expressed “profound sadness” at the closure of the business.

The Cork-based firm had been in refinancing talks with Nama. It had worked on several high-profile projects, including the Cork Airport Business Park, the Luas extension to Cherrywood, Co Dublin, and the final section of the M7 motorway. It operated about 16 sites in Ireland.

Established in 1968, Bowen grew to become one of the largest building and civil engineering contractors in the State with offices in Cork, Dublin, Belfast, Limerick and Waterford.