Concerns Raised After Receiver Appointed To Co. Limerick Business

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Concern has been expressed for jobs and subcontractors following the appointment of a receiver to construction firm Road Bridge.

Over 600 direct jobs are impacted with knock on effects for subcontractors, suppliers and clients.

A reived from Grant Thornton is now appointed – the company is said to owe Bank of Ireland between 30 and 35 million euros. 

The company was founded in Limerick  in 1967 and employs staff in Ireland, the UK and Sweden, and is involved in some of the biggest infrastructural road, energy and water projects in Europe.

A takeover deal to avoid receivership failed late last week when O’Connor Utilities said the complexity of  the group made a deal impossible.

The company is said to have contracts of up to €900 million in it’s work schedule. 

The Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar says his officials and staff  in Enterprise Ireland will engage with the company as a matter of urgency. 

Meanwhile Deputy Michael Lowry is to raise the issue of redundancy payments for the staff with the Department  of Social Protection.

The receiver Grant Thornton has informed  all employees that the process of receivership has entered a 30 day calendar period called ‘Collection Redundancy Period’.  This means the staff will not qualify for Social Protection payments.

If they accept an offer of a job during the 30 days they will lose entitlement to Redundancy  payment. Deputy Lowry says that Heather Humphries Minister for Social Protection will examine the possibility of giving a waver to the clause which gives rise to the problem.