Liquidators’ claims are ‘unfair and damaging’
THE new owners of RG Falla Construction – the business formerly owned by the Falla family – has hit out at claims there was something wrong with the way the company was acquired.
At a meeting held last week for creditors of firms from the collapsed Garenne Group, liquidators said they wanted to review the sale of contracts and assets from the failing RG Falla to RG Falla Construction.
The company RG Falla Construction was registered last August, before the group’s financial problems became apparent. The man now leading that business has revealed that an offer was made to buy it nearly two weeks before Jersey company Camerons became the first of the group’s companies to fail, in February.
‘To say, as it has been claimed by one of the joint liquidators, Interpath Limited, that they were not aware of the manner in which we became responsible for the staff, contracts and assets of the former RG Falla is simply not true, grossly unfair and damaging,’ said RG Falla Construction managing director Brent Green.
‘Collas Crill advised us on the transaction, Hurel were advised by their own lawyers, and the facts could not be clearer.’
Mr Green said that Cameron’s collapse in Jersey triggered fatal problems for the Garenne Group because of its underlying financial issues and the extent of inter-company lending and cross-guarantees, and that this overwhelmed RG Falla, now known as Hurel Ltd.
‘In short, the group under the previous management was finished and we, as RG Falla Construction Limited, entered into the acquisition at considerable cost, in order to preserve those aspects of the RG Falla business that could be saved.’
The cost of the deal remains undisclosed. It was completed a few days after Cameron’s collapsed.
Mr Green said the first offer to buy the business was on 15 February and was known by Interpath as well as all directors of Hurel and Garenne Group Holdings.
He added that negotiations went on for about two weeks and Interpath was present for various conference calls, so it was aware of the transaction from the start.
Interpath, which is working with KPMG as joint liquidators, issued a brief statement.
‘The joint liquidators of Hurel are actively progressing this complex matter and will continue to liaise with RG Falla Construction with the aim of generating a positive outcome for stakeholders, in accordance with our statutory responsibilities.’
Mr Green has said that 100 jobs and contracts have been saved, some at significant cost, protecting clients, sub-contractors and suppliers, paying some £1.5m. to subcontractors and suppliers on current contracts.
