Cordil Construction closes all sites

Robbo

chickendinner wrote: »

Exactly



If you had knowledge of said company, you would realise subcontractors are screwed.



You can ruin just about any thread with irrevelant facts thats nobody was questioning.

I'd see my posting as stating the factual position rather than resorting to the kind of rampant speculation that skirts the defamation minefield. Moreover, I'd regard the kind of fatalistic posting that "the subbies are screwed" as being the kind of self fulfilling prophecy that would hasten the demise of a faltering company, but if that's your level of concern for the subcontractors, so be it. I'm sure your whispering campaign will pay their bills into the future.

chickendinner

Robbo wrote: »

I'd see my posting as stating the factual position rather than resorting to the kind of rampant speculation that skirts the defamation minefield. Moreover, I'd regard the kind of fatalistic posting that "the subbies are screwed" as being the kind of self fulfilling prophecy that would hasten the demise of a faltering company, but if that's your level of concern for the subcontractors, so be it. I'm sure your whispering campaign will pay their bills into the future.

Would it not be a factual position to suggest when a major construction closes down, the majority of people who get screwed over are the subcontractors?

dell1211

Robbo wrote: »

I'd see my posting as stating the factual position rather than resorting to the kind of rampant speculation that skirts the defamation minefield. Moreover, I'd regard the kind of fatalistic posting that "the subbies are screwed" as being the kind of self fulfilling prophecy that would hasten the demise of a faltering company, but if that's your level of concern for the subcontractors, so be it. I'm sure your whispering campaign will pay their bills into the future.

Ive worked on plenty of receivership's and its always the unsecured creditors that get screwed and in this case it will be the subbies

In this case the bank has a charge on some assets and they get first dibs, then the other secured creditors and the revenue and then the unsecured creditors get whats left. In all the cases ive worked on there is rarely any money left after the first few get their share and if there is its never usually more than 20c in the euro, if the subbies weren't going to get screwed then that would mean that there is enough money to pay them after the preferential creditors, and if that was the case then the company would not be in receivership,

If its a case that the company is sold by the receiver as a going concern then the creditors will be asked to vote on it and they nearly always take whats offered which again is rarely more than 20c in the euro

its as simple as that

Robbo

chickendinner wrote: »

Would it not be a factual position to suggest when a major construction closes down, the majority of people who get screwed over are the subcontractors?

dell1211 wrote: »

Ive worked on plenty of receivership's and its always the unsecured creditors that get screwed and in this case it will be the subbies

In this case the bank has a charge on some assets and they get first dibs, then the other secured creditors and the revenue and then the unsecured creditors get whats left. In all the cases ive worked on there is rarely any money left after the first few get their share and if there is its never usually more than 20c in the euro, if the subbies weren't going to get screwed then that would mean that there is enough money to pay them after the preferential creditors, and if that was the case then the company would not be in receivership,

If its a case that the company is sold by the receiver as a going concern then the creditors will be asked to vote on it and they nearly always take whats offered which again is rarely more than 20c in the euro

its as simple as that

Yes and yes to both posts. But's let's not conflate this with a liquidation which it isn't for the time being, that's been my point all along.

kinetic

Subbies will get nothing. Thats what let building companies get so big so quick in this country, because subbies have no rights whatsoever
and were bullied and shafted while big companies got richer and richer.

Mrs OBumble

kinetic wrote: »

... because subbies have no rights whatsoever
and were bullied and shafted while big companies got richer and richer.

So why did they do subbing then?

Provizer

Check this out!! CORDIL backwards. How creative!!

COMPANY NAME: LIDROC CONSTRUCTION LIMITED
Registered Number: 494972
Company Type: PRIVATE LIMITED BY SHARES
Incorporated: 14/02/2011
Company Status: NORMAL

Sponge Bob

Domain Lidroc .com registered by a Galway company for a client

http://www.whois-search.com/whois/lidroc.com

Created on the 16th of June 2009 . There is planning for ya

dell1211

JustMary wrote: »

So why did they do subbing then?

Industry practice, if you are a subbie for a large builder you have to give credit or you get no work. Just like most industries really....

Toon--soldier

dell1211 wrote: »

Industry practice, if you are a subbie for a large builder you have to give credit or you get no work. Just like most industries really....

Not entirely true if the sub-contractor is a nominated sub-contractor (quite common in Ireland) they sign a contract directly with the client and not the main contractor.

galwayrush

kinetic wrote: »

Subbies will get nothing. Thats what let building companies get so big so quick in this country, because subbies have no rights whatsoever
and were bullied and shafted while big companies got richer and richer.

Thankfully i did not get caught with this company, but i have been done by quite a few companies in similar circumstances. Liquidator, Vat, Tax and Banks, they come first, and will get 100% of what they are owed if there is enough there, if there is anything left over after those 'preferencial' 'clients' get theirs, the remainder is divided between other debtors, but at that stage, there is usually nothing left.
I had 4 such problems last year alone, only one had some money left after the rich elite got all theirs, i got 3.5 cent in the euro.
I now have a tax problem because of such a ****ed up system, there is no help available for the self employed. Is something is not done about this unfairness soon, people will take the law into their own hands.

Provizer

Toon--soldier wrote: »

Not entirely true if the sub-contractor is a nominated sub-contractor (quite common in Ireland) they sign a contract directly with the client and not the main contractor.

Being nominated is not common at all now. Not with the new Gov. contract, you can be a novated but it's rare. The Gov. contract is all about pushing the risk onto the MC and they are supposed to price that risk into their bid, but with the crazy below cost pricing last year, coupled with the new contract it's all coming home to roost now. The Gov. need to have much tighter checking procedures for MC's before they award them these contract. It's the subbies and the taxpayers picking up the pieces now.

Sponge Bob

There should be a mandatory schedule of outpayments to subbies in the tender and 50% of the subbies payment + 100% of materials should be paid before the government will even entertain overrun discussions with the MC. As well as that that 50%+100% should be paid in full immediately on receipt of goverernment funds or the directors are personally liable for the cash ...big mansions and all.

The way many contractors operate is fraud, this should not be tolerated with public money.

emptybladder

Four former directors of Cordil Construction – which collapsed into receivership last week with debts of well over €30 million – are ‘going forward backwards’, after forming a new company called Lidroc Construction.
Lidroc was formed in mid-February and its four directors are Gerry Dillon, Padraig Higgins, Morgan Darcy and Tom O’Callaghan – all former directors of Cordil.
Meanwhile, the Receiver Manager’s staff began the lengthy process of trawling through Cordil accounts yesterday (Monday) morning and have already found that a series of contracts are tied up in arbitration.
Michael McAteer of insolvency specialists Grant Thornton was appointed as Receiver Manager over Cordil last Thursday night.
He is now also assessing the viability of ‘finishing out’ existing contracts, including the new arthouse cinema on Lower Merchant’s Road, the extension to the ‘Jes’ school and the new clubhouse for Hibernians Football Club.
All four directors of the new Lidroc entity (Cordil spelt backwards) were directors in Cordil, which was formed more than a decade ago by joint owners Gerry Dillon and Pat Corrigan.
According to documents filed with the Companies Registration Office on May 16, Tom O’Callaghan resigned as a director of Cordil, a change which was listed as having taken effect from last January.
On May 12, our sister newspaper, the Connacht Tribune revealed that Cordil had closed down its 15 sites around the country, with the loss of 51 direct jobs and more than 400 subcontractors’ jobs.
The company blamed restrictive clauses in Government contracts, and claimed to be owed around €4m by the HSE and the Department of Education for completed work and work in progress.
Attempts by the directors over the following fortnight to secure a temporary overdraft facility from bankers failed, and last Thursday, Mr McAteer was appointed Receiver Manager over the entire assets of Cordil by ACC Bank, which had a charge over all of the company’s fixed and floating assets.
Meanwhile, it has emerged that Cordil had suffered further cashflow problems because of a series of unpaid contracts which are tied up in arbitration and conciliation processes.

http://www.galwaynews.ie/19705-troubled-construction-firm%E2%80%99s-directors-form-new-company

Interesting sequence of events. Not-so-subtle signposting too LOL.

yosemite_sam

snubbleste wrote: »

Taxpayer seeks value for money - should be the headline of that article.

Cordill were a good firm to work for, paid up no messing even the retention. Not like most of the scum bag builders out there

yosemite_sam

kinetic wrote: »

Subbies will get nothing. Thats what let building companies get so big so quick in this country, because subbies have no rights whatsoever
and were bullied and shafted while big companies got richer and richer.

I heard there is aa new EU law coming in on that, From what I have heard the Company are owed by the Government far more than what is outstanding to the suppliers. I may not be right here, but their overdraft was taken away and that is where the problem is. But they are not alone, the banks have slashed loads of peoples overdrafts, me included

Provizer

yosemite_sam wrote: »

Cordill were a good firm to work for, paid up no messing even the retention. Not like most of the scum bag builders out there

What are you talking about? They owe me and a lot more people a lot of money.I am sorry if you worked for them and the way things have worked out for all Cordil's staff but don't try and tell me they "paid up no messing even the retention"...your going to pi$$ a lot of people off with that statement..and then you go calling other people scum bags! What's that about?
I have just joined Boards.ie because i would like to discuss statements like this and maybe give you some insight into my side of the story. I have done work for most of the contractors in Galway and around the country and I think I have a fair idea of what they are like.

kinetic

yosemite_sam wrote: »

I heard there is aa new EU law coming in on that, From what I have heard the Company are owed by the Government far more than what is outstanding to the suppliers. I may not be right here, but their overdraft was taken away and that is where the problem is. But they are not alone, the banks have slashed loads of peoples overdrafts, me included

Its not a new EU law.
Its been passed in the seanad and is set to go through the Dail. it basically gives subbies some much needed protection. i.e. a builder cannot hand over the project to the client until subbies have signed off with it and are happy with their payment.
I guarantee you a lot of builders would not have been in business here in the last 10 years if this legislation was in place.
A lot of the builders who are now out of business will not be missed in the trade.

Provizer

Where to next?

http://www.gmpenterprises.co.uk/Portfolio