Update 9th September 2021
Suppliers to civils contractor O’Keefe Construction (Greenwich) Ltd have overwhelmingly voted in favour of the proposed Company Voluntary Arrangement (CVA) with 90% of creditors supporting the move.
CEO Patrick O’Keefe said: “We wish to wholeheartedly thank our creditors for this vote of confidence in the business.
South East based civil contractor O’Keefe Construction (Greenwich Ltd), established for 50 years, is proposing a Company Voluntary Arrangement with its creditors after suffering a “significant loss” in 2021.
RSM Restructuring Advisory LLP are advising the directors.
O’Keefe said if creditors approve the move it “will secure the company’s future as a going concern and allow it to continue to service its ongoing clients.''
“Crucially, a CVA will also maximise the returns to the company’s creditors, compared to alternative restructuring procedures.”
A company statement added: “On successful approval of the CVA proposal, the company’s shareholders will contribute additional sums to support its short-term cashflow and to ensure the business has increased liquidity levels.''
“The financial restructuring afforded by the CVA, alongside operational improvements made to the business, will ensure that O’Keefe is well-placed to complete its ongoing and profitable work, and to fulfil its client needs.”
Directors said they were “optimistic regarding the future success of the company in view of the significant forward order book and improving project margins.”
CEO Patrick O’Keefe said: “The board were tasked with delivering the business out of the current difficulties and after taking specialist advice, has agreed to enter into a CVA to allow this mechanism to secure the long-term success and profitability of the business.”
“Thanks to our exceptional staff, our current portfolio of jobs is trading very well. The conclusion of the CVA process will immediately put the business in a positive footing”
The CVA does not apply to O’Keefe Demolition which operates as a separate business.
Latest full group results posted at Companies House for the year to May 31 2020 show a pre-tax loss of £1.8m from a turnover of £61.1m as the business employed 178 staff.