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Gerkros Boilers Irish arm in cash crisis

Gerkros Boilers (Tipperary) has entered ‘examinership’ in Ireland after suffering severe cash flow problems.

Examinership is similar to administration in the UK and means the company has court protection from its creditors for up to 100 days.

Gerkros, which supplies oil-fired and biomass boilers across Europe, the USA and Canada, insisted the move would not impact its UK operations.

Barry Forrest, from insolvency firm Barry Lennon, has been appointed examiner and will work to find new investors for the company and to restructure its debts, believed to be five million Euros.

A Gerkros spokesman said: “We are under the protection of the court for 100 days to allow the company to restructure and get ourselves back on our feet. We are now actively seeking investment.

“These problems are purely down to cash flow and the fact that in the current economic climate it is very difficult to secure money which is owed to the company.

“This should not have an impact on the UK business, where we are seeing growth at the moment and we are picking up business.

“It is only the Ireland operation that is subject to the court order.”

Gerkros has traditionally manufactured oil-fired boilers but has recently diversified to wood pellet biomass boilers.

There has been a sharp decline in the oil-fired boiler market in Ireland in recent years while activity has slowed in the UK, but the company has seen growing interest in its biomass products.

The spokesman said: “Demand for our biomass boilers continues to increase and we have contracts signed for distribution into the US. Revenue expectations for this year are somewhere around 11.5 million Euros, which is still up from last year.”