D-Day for city construction firm owed €4m by the Govt

Date Published: 19-May-2011

BY ENDA CUNNINGHAM

Next Monday is ‘D-Day’ for a major Galway construction company which is facing collapse, unless it can secure a cash injection of between €4m and €5m.

Cordil Construction – which temporarily laid off 51 employees and more than 400 subcontractors last week – is facing collapse unless bank funding is secured, or almost €4m for work on Government contracts is paid up.

A company spokesperson told the Galway City Tribune: “Negotiations are ongoing, we have no control over the pace of the [banks’] decision, but we’re still hopeful of a positive outcome.

“Last week, we created a [two week] window opportunity for a resolution to be found. Perhaps they’re taking this time to do due diligence. It was certainly a positive thing that the matter was discussed in Dáil Éireann for 30 minutes last Thursday.

“Next Monday or Tuesday is D-Day. Either we get the money owed from the State or a temporary facility from the bank. If both fail, we have to face the reality,” the spokesperson said.

Because of strict conditions imposed on all new Government contracts, the company is forced to pay for supplies and subcontractors ‘up front’ – it’s understood Cordil is owed almost €4m from work completed and work in progress on Department of Health and Dept. of Education contracts.

Cordil is currently working on 15 projects around the country worth a total of €27m – including seven major Government schemes.

Read more in today’s Galway City Tribune