Troubled T&A Kernoghan placed into administration
Northern Ireland construction firm T&A Kernoghan, which was previously removed from two contacts in Scotland, has fallen into administration owing thousands of pounds to suppliers.
The County Antrim-based firm was already facing two winding-up orders from contractors Michael Moore and Paw Structures Ltd, though hearings into the orders have been adjourned.
Other sub-contractors who are owed money include a cleaner owed £8,000 and a major supplier who is owed £800,000.
The Belfast Telegraph has reported that Upstream Capital - which provided invoice finance to fund a management buy-out by the directors - were set to take the step against T&A Kernoghan.
In a statement, company boss Richard Kernoghan claimed the buy-out took place after losses were accrued on a major project to build a Sikh temple in Glasgow.
And Mr Kernoghan said the buy-out “had saved the business and secured around 100 direct jobs and around 500 sub-contractor jobs”.
Last year T&A Kernoghan was removed from two major building contracts in Scotland. Gorebridge Community Development Trust removed the firm from a £2.2m project to build a community centre and office space in September.
And South Ayrshire Council took the decision to remove it from a £1.5m golf clubhouse project due to various delays a month earlier.
Michael Jennings and Brian Murphy of BDO Northern Ireland were officially appointed as Joint Administrators over T&A Kernoghan by the company’s secured lenders yesterday.
All staff at the business, thought to be around 50, were made redundant immediately.
BDO said that a winding up petition had been presented against the company by one of its creditors which was subsequently supported by a number of other creditors.
BDO added: “Following our appointment, it is with regret that due to the extent of the Company’s financial difficulties, the Joint Administrators have been required to make all staff redundant and cease operations across the various building sites throughout the UK.
“The Administrators and their staff will be responsible for maximising value for the Company’s stakeholders through the realisation of the remaining assets of the Company.”