Liquidators appointed to large Channel Islands construction company

Liquidators have been appointed to Garenne Construction Group (GCGL) after it was deemed insolvent on Friday 31 March.

The company had been dealing with financial issues since Camerons, one of its subsidiaries, was liquidated on Monday 27 March.

This, according to its directors, ultimately made GCGL unviable as a business "given its financial position."

It will now start the process of voluntarily winding up - staff from Interpath Advisory and KPMG Advisory have been hired as liquidators.

Linda Johnson from KPMG, says that "following the closure of Camerons, the insolvency of GCGL has been precipitated due to the various guarantees it provided which have been called upon."

Meanwhile, Geoff Jacobs from Interpath, thanked the company's employees, and said: "Our intention is to retain six employees for a period of time to continue the provision of certain head office functions to the wider group entities where appropriate to do so and we will also seek to realise the shares in certain subsidiaries."

GCGL is the parent company to nine businesses in the Channel Islands, including AFM, Granite Le Pelley, and Sterling Services.

It remains unclear what exactly this development will mean for these companies.

However, on Facebook, AFM wrote that it will "not be subject to any sort of insolvency process and both AFM Jersey and AFM Guernsey will continue to trade under the control of its own board of directors."