15.06.2010

Caterpillar dealer in receivership

Two companies in the McCormick Macnaugton Group - the sole distributor of Caterpillar Construction Equipment, Marine, and Power Generation products for Ireland – have appointed a receiver.

Accountant Billy O’Riordan was appointed to McCormick Macnaughton and McCormick Macnaughton Power Services last week by Caterpillar Financial Services, the finance division of the international machinery firm. The group, which is owned by businessman Malcolm Macnaughton, is the sole distributor of Caterpillar building equipment and power generators in Ireland with branches in Dublin, Lisburn and Cork.

A new head office complex was recently built by the group in Rathcoole, off the Naas Road in Dublin. Caterpillar Financial Services has committed to paying the wages of the company’s employees for six weeks.
The company developed large amounts of office and industrial space at Rathcoole as the property market turned, contributing to the current financial troubles.

Company filings show that the debts of McCormick Macnaughton are guaranteed by the group’s overall company, Ballymana Holdings, which made a loss of €13 million in 2008 – compared to a profit of €7 million the previous year as turnover plummeted 35 per cent to €123 million.
The company said in its 2008 accounts that it renegotiated debt facilities, which enabled the group to extend the repayment terms of certain debts due within a year.

The group employed about 400 people.