One of Bermuda’s largest construction companies has been wound up.Narinder Hargun, the Chief Justice, granted a winding-up order in respect of Correia Construction Company Ltd in a hearing on Friday morning in the Commercial Division of the Supreme Court.The winding-up petition was presented to the court by Mill Reach Properties Ltd under section 161(e) of the Companies Act on the basis of non-payment of a statutory demand.The legislation provides that a court may wind up a company when it is unable to pay its debts.Tina Herrero, of law firm Marshall Diel & Myers Ltd, represented the petitioner.She told the court that the debt to the petitioner, and the company’s insolvency, was not disputed by the company.Corinne Hewson, in-house counsel for Correia Construction, told the court that the company has “$5.5 million roughly in assets” and “just under that in liabilities”. The company had no cashflow, she said, adding that it had $3.4 million in receivables. Amounts said to be owing by the company to a variety of creditors ranged from $55,000 to $320,000, the court heard.Smith Hauling & Excavation opposed the winding-up order. The company was represented in the hearing by Vaughan Caines of Forensica Legal.Mr Caines told the Court that his client opposed the winding-up on the basis of section 111 of the Companies Act, which provides for an alternative remedy to winding-up in circumstances where the affairs of a company have been conducted in a manner that is oppressive or prejudicial to a shareholder.The Chief Justice rejected the argument. Mr Hargun said that Smith Hauling could object to the winding-up as a creditor, but noted that the majority of Correia Construction’s creditors wanted the company to be wound up. He added that once a winding-up order was made, there would be no issue of dissipation of assets.In the circumstances, the Chief Justice ruled, the company was deemed to be insolvent.Mr Hargun appointed Charles Thresh and Mark Allitt of KPMG as joint liquidators of the company.Ms Hewson said after the hearing: “We had no objection to the order whatsoever. We are relieved that a liquidator has been appointed, and we look forward to working with them. We believe, or hope, that creditors will receive no less than 80 cents on the dollar.” The court heard that Butterfield Bank has a floating charge over assets and is a secured creditor of the company. As such, the debt to it will have priority over claims by general creditors, who will share in the remaining assets under the liquidation. Some $320,000 is due to Butterfield, Ms Hewson told the Court.Correia Construction was founded in 1972 by the late Joseph Correia and his son, Dennis. Joseph retired in 1992, while Dennis carried on. He most recently acted as chief executive officer of the company.The company’s projects in Bermuda have included the Heritage Wharf development at Royal Naval Dockyard, and the Hamilton Princess and Beach Club marina. Correia Construction has also worked on projects in The Bahamas, Cuba, Honduras, St Kitts, Costa Rica and Jamaica. • It is The Royal Gazette’s policy not to allow comments on stories regarding court cases. As we are legally liable for any slanderous or defamatory comments made on our website, this move is for our protection as well as that of our readers.