Building firms in administration

Two Northern Ireland construction firms have been placed into administration, suggesting the recession in the building sector is continuing to bite.

Eassda Ltd of Templepatrick, owned by the Jackson family, was placed into the hands of administrators BDO last week.

Euro Construction Corporation of Waringstown, owned by businessman Raymond Acheson, is being administered by KPMG.

Both companies have significant investments in the Republic.

Eassda was put into administration after a winding-up petition was lodged against them over an unpaid tax bill.

The petition was served by Revenue and Customs in September.

Downturn

A statement from BDO said the company had been severely impacted by the downturn in the housing market and construction industry.

"Following their appointment, the administrators and their team at BDO are undertaking an assessment and review of the company's position with a view to the marketing and sale of the sites held within the company," a statement said.

It is understood BDO are selling sites at six locations in County Antrim, including locations at Larne and Antrim.

The Eassda group also has interests in two luxury golf and hotel complexes in the Irish Republic - Moyvalley in County Kildare and New Forest in County Westmeath.

It is thought they are not affected by the administration order.

The administration of Euro Construction is being jointly handled by KPMG's Belfast and Dublin offices.

The company has a land bank at Bremore in north Dublin and properties and land outside Drogheda in County Louth, as well property in Northern Ireland.

According to the Dublin-based newspaper, the Sunday Business Post, the administrator was appointed at the behest of Ulster Bank which has an exposure of about 30m euros to Euro Construction.

No-one from the company was available for comment.