'Unprecedented rise' in construction costs sees examiner appointed to social housing builders

The High Court has appointed an interim examiner to Blacklough Construction Limited following an application on grounds of cash-flow insolvency. The company, which has 48 employees and engages subcontractors, is currently constructing over 360 social housing units across five sites for Respond Housing Association, including developments in Charlestown, County Mayo, and locations in Dublin, Meath, Westmeath and Louth. An independent expert's report indicated the company has reasonable prospects of survival if certain steps are taken. Counsel attributed the firm's difficulties primarily to a 33 per cent rise in building material costs since 2020, alongside a potential planning permission issue at the Carrickmines site in Dublin. Trade creditors are owed over €3 million. Chartered accountant Joe Walsh was appointed as interim examiner by Mr Justice Michael Quinn on Thursday. The court was satisfied that creditors would fare better under an examinership than in liquidation. Proceedings were adjourned to later in the month, with creditors to be notified of the application.