Courts / Dublin / Report

Provisional liquidators appointed to construction firm after court hears of 'extraordinary' price inflation

Date
2022-11-15
Stage
Hearing Or Decision
Primary locality
Dublin
County
Dublin

Summary

The High Court on 15 November 2022 appointed joint provisional liquidators to LMC MEP Ltd, a mechanical engineering firm that had fallen into financial distress. The court heard that the company's difficulties were caused by the Covid‑19 pandemic and "extraordinary" price inflation in construction materials, which had increased the cost of a major house‑building project in Dublin by €1 million, making the contract "disastrously loss‑making". LMC MEP Ltd has a negative net asset position of more than €6.66 million and owes over €3.5 million to trade suppliers, with additional debts to Revenue and other group entities. The firm had entered a €10 million contract with BAM for a hotel and 412 apartments in Newmarket Square, Dublin 8, but inflation added €1 million to its costs, rendering the contract loss‑making.

Who, what, where, when and why

What: Report matter: Provisional liquidators appointed to construction firm after court hears of 'extraordinary' price inflation. Procedural stage: hearing_or_decision

When:

Places mentioned

Court Venue
  • The High Court
  • High Court
Secondary Mention
Address Area
  • Newmarket Square
  • Kilcarbery Park
  • Nangor Road
Facility
  • Irish Prison

Topics

Stage Hearing Or Decision

Related court reports

Read the original CNI report

Correction or retraction request

If a fact, identity, locality or legal outcome needs review, email the newsroom with this report's details prefilled.

Email a correction request