SEVERAL TRADE creditors of housebuilders Laragan Developments, which is under court protection, have told the High Court of their anger over their treatment by the company and during the examinership process.
Laragan, part of the Hanly group of construction and quarrying companies, has liabilities of €147 million and assets worth €2.35 million. The court heard €101 million of Laragan’s liability is owed to Alan Hanly of the Hanly group.
If the proposed survival scheme for the company is approved, one creditor said his firm would be left on the “dung heap” while Alan Hanly would have “got off free with a clean bill of health”.
Counsel for the examiner of the company said there was no evidence Laragan had engaged in “reckless trading”.
Mr Justice Frank Clarke, who is being asked to approve survival proposals for the company presented by examiner Paul McCann, heard submissions yesterday from the creditors.
Under the terms of the proposed scheme of arrangement, many of the trade creditors will get 6.4 per cent of what they are owed.
Yesterday, Danny Lally, speaking on behalf of Mayo Trowel Trades Ltd, said the company “did everything Laragan asked us” but failed to get full payment. The offer to the trade creditors was “a pittance” and “a joke”, he said. He would be prepared to get no money and see the firm go into liquidation and have the company “properly investigated”, Mr Lally said.
Mr Lally was also critical of the examinership process.
The hearing continues today.