THE HIGH Court has appointed an interim examiner to Cork-based Howley Civil Engineering Ltd, which employs 430 people.

Seeking the appointment yesterday, Declan Murphy, for the company, based in Carrintwohill, Co Cork, told Ms Justice Mary Finlay Geoghegan that the company was engaged in significant contracts and it was important that these be completed to ensure their value.

The judge was told the company was insolvent and was unable to pay its debts due to several factors, including the slowdown in the construction sector and the incurring of additional costs on motorway and retail projects, but that its directors believed it had very good trading prospects.

The directors and an independent accountant believed that, if certain conditions were met, including a refinancing package or investment, the company had a reasonable prospect of survival.

Examinership was more in the interest of creditors than a winding up, the company said.

Among the largest creditors of the company are Caterpillar Financial Services Ireland, which is owed €5.5 million, and AIB Finance and Leasing, which is owed €3 million.

Caterpillar had some weeks ago initiated proceedings to recover 17 machines, each with an estimated value of €200,000, leased to Howley.

The judge said she was satisfied this was an appropriate case for an interim examinership.

She appointed Brian McEnery as interim examiner to Howley and to a related company, Jenthorn Ltd, and adjourned the matter to later this month.