LPS International Plant Ltd, a Co Galway plant and machinery firm, agreed to a €106.6m tax settlement with the Revenue Commissioners earlier this year, but held just €17,478.50 across two bank accounts when placed into liquidation, according to company documents filed with the Companies Office. The firm, which listed 41-year-old Michael Leonard as its sole director since 2016, appeared on the Revenue defaulters list for the first quarter of the year with €106.2m left unpaid at the time of publication.
Revenue Settlement Breakdown and Unpaid Liabilities
According to the Revenue Commissioners’ quarterly defaulter figures published in June, the settlement comprised multiple tax under-declarations and penalties. The business owed €46.2m for the under-declaration of Value-Added Tax (VAT), alongside €14.1m in interest and an additional €46.2m in penalties. Nicholas O’Dwyer was appointed as liquidator to the firm in July to manage the winding-up process.
New documents lodged by Mr O’Dwyer reveal the stark contrast between the massive tax debt and the company’s remaining liquid funds. As of July 24, the firm held €17,063.91 in one bank account and £355.65 (€415.59) in a second account, totaling €17,478.50. The liquidator’s statement of proceedings shows that unsecured creditors are owed €45.15m. Meanwhile, the firm’s total assets were valued at €1.89m after deducting amounts charged to secured creditors and debenture holders, whose liabilities totaled €1.75m.
Minor Payouts and Asset Realisations During Liquidation
Records detailing the day-to-day administration of the winding-up process show minimal financial activity during the initial liquidation period. Mr O’Dwyer’s filings state that €98.40 has been paid out in bank charges to No Frixion Ltd, alongside €5.09 paid to AIB.
Additional documentation filed with the Companies Office outlines minor capital recoveries. The firm secured receipts of €17,069 from a debtor’s balance dated September 25. Furthermore, realisations from a British pound account generated total receipts of £454.05 from pre-liquidation funds.
Second Galway Firm Linked to Director Agrees €4.3m Settlement
A second plant hire company sharing directorship connections with Mr Leonard also agreed to a multi-million-euro settlement with the Revenue Commissioners. MPL Plant Hire Limited, which listed Mr Leonard with a Claregalway address as its sole director and owner, agreed to a €4.3m settlement during the first quarter of the year, with €4.1m remaining unpaid when the figures were published in June.
According to Revenue data, MPL Plant Hire Limited owed €1.8m for the under-declaration of taxes including PAYE, PRSI, Universal Social Charge (USC), and VAT. The company also incurred €604,449 in interest and an additional €1.8m in penalties.
Like LPS International Plant Ltd, MPL Plant Hire Limited is currently in liquidation under the supervision of Mr O’Dwyer. Documentation filed for this second entity shows a cash balance of €13,994.91 as of July 24. The firm accumulated significant debts, leaving €3,151,831 owed to unsecured creditors. Its assets, after deductions for secured creditors and debenture holders, totaled €141,452.
Did you know?
Frequently Asked Questions
What was the total tax settlement agreed by LPS International Plant Ltd?
The firm agreed to a €106.6m settlement with the Revenue Commissioners, with €106.2m remaining unpaid at the time of publication, according to official records.
Who is the liquidator handling both company wind-ups?
Nicholas O’Dwyer was appointed as the liquidator to oversee the winding-up proceedings for both LPS International Plant Ltd and MPL Plant Hire Limited.
How much cash did LPS International Plant Ltd hold upon liquidation?
New documents lodged with the Companies Office show the firm held a combined total of €17,478.50 across two bank accounts as of July 24.
What liabilities were recorded for MPL Plant Hire Limited?
MPL Plant Hire Limited owed €3,151,831 to unsecured creditors, alongside a €4.3m Revenue settlement that included unpaid taxes, interest, and penalties.
Want to stay updated on corporate liquidations and regulatory enforcement? Explore our latest news articles or subscribe to our newsletter for regular business updates.