New owners defend the acquisition of RG Falla

Brent Green, managing director of the new RG Falla Construction, said the company was not responsible for the insolvency and were frustrated about claims made at last week’s creditors’ meeting.

Some 50 people attended a meeting called by liquidators of RG Falla, now known as Hurel Ltd, where they were told that chances of being paid for historic contracts were virtually non-existent, and where repeated concerns were raised about the terms of the takeover of the failing company.

But RG Falla Construction, now operating from RG Falla's offices at Garenne Park, says it has saved 100 jobs, at least half a dozen building projects, including L’Aumone Surgery, and over the weekend paid nearly 100 sub-contractors and suppliers some £600,000 for work on current projects, money provided by its backers.

‘We feel we have done the very best we can,’ said Mr Green.

‘We didn’t cause the insolvency of Garenne, we weren’t involved. We have taken on a company, we haven’t made millions out of it, but we are looking at the future of this company for the long-term. At the moment we are not making money, but we will do so. It’s a long-term investment, not a short-term turnaround.’

Mr Green said he was frustrated at much of what he had heard at the creditors’ meeting about the acquisition process and the company’s motives.

‘We were unable to buy the whole of the business, but we ended up taking on all the staff and all the current contracts, and as much as we can in terms of the older projects.

‘We are keeping people in work, we do the jobs, and make sure that contractors get paid.

‘The other option would have meant that the company went into liquidation, jobs would have been lost, nobody would have got paid, and some projects would have stopped.

‘We are trying to do the right thing. We looked at this as investment in a business, and we are being vilified for it. Asset-stripping is a very hurtful allegation and it is wrong.’

Mr Green said that he was pleased to have paid sub-contractors up to date. Guernsey Press contacted some firms understood to be linked to RG Falla and RG Falla Construction projects, who confirmed that some payments had been made for work carried out on current projects but nothing in relation to historic payments due.

‘Sub-contractors working for us need to feel confident that they are going to get paid. I’m spending a lot of time speaking to that supply chain, getting their confidence, prove we are paying them, and generally it’s been well received so far. You cannot please everyone, but I am going to do my best.’

BLOB Guernsey Press had access to the creditors’ meeting last week as it is a creditor of Hurel Ltd.