Liquidators have begun dismantling MEPCO, the construction company that closed suddenly in October and laid off more than 50 employees.
Employees learned of the firm’s financial troubles on Oct. 17, the day they were laid off.
MEPCO, established in 2008, worked on mechanical, electrical, fire systems and other building services. The company most recently had contracts to help build the Kimpton Seafire resort on Seven Mile Beach.
Kenneth Krys, liquidator for MEPCO, said by email Wednesday, “Since we were appointed, we have made considerable progress in selling the vehicles and inventory that MEPCO held. We have been able to repay the secured debt due to a local bank who took steps to enforce their security.
“Any net recoveries will now go towards preferential claims which include severance payments to former employees and pension plan obligations.”
All employees were paid through the day they were laid off, according to an earlier interview with Mr. Krys, but they will have to work through the liquidation process for any other money the company might owe them.
When the company closed, it had 62 employees, 20 of whom were Caymanian, according to the Immigration Department.
The liquidator said the company has moved out of its Highgrove Business Park location and will be out of its other property in the middle of January to reduce costs.
“We held a town hall meeting with creditors at the end of November to advise them of the financial predicament that the company was in,” he said.
Once the Grand Court grants Mr. Krys and Christopher Smith the power to wind up the company, Mr. Krys said they will hold a meeting with creditors, likely in February.
According to the petition filed this month, the company had $42,000 in capital.
MEPCO was owned by James Laurenson and Mike Brown. Mr. Brown passed away recently.
Mr. Krys said, “Our understanding is that Mr. Brown was not involved in the business in recent years due to his health, and his absence will not adversely impact the winding up of MEPCO and our efforts to recover and realize assets.”