Chief Executive Officer Cathal O\u2019Rourke sent a letter nearly three weeks ago announcing that Laing O\u2019Rourke Construction South would be shut down. Companies House records confirm that the company was liquidated on February 28.<\/p>\n\n\n\n
In his letter dated February 21, O\u2019Rourke stated: \u201cLaing O\u2019Rourke Construction South was recently subject to legal action related to a historical project. Despite our best efforts to reach an amicable settlement, our counterparty has not shown sufficient willingness to cooperate towards an agreement.\u201d<\/p>\n\n\n\n
He added: \u201cWe regularly close down outdated subsidiaries and have taken similar actions with 14 subsidiary entities since 2022 to simplify our corporate structure.\u201d<\/p>\n\n\n\n
At the center of the dispute is the luxury apartment complex One Hyde Park in London, designed by RSHP for Candy & Candy, completed in 2009 and opened in 2011.<\/p>\n\n\n\n
Residents have complained about multiple technical issues, including pipe corrosion and leaking soldered joints, and have filed a lawsuit seeking \u00a335 million in compensation.<\/p>\n\n\n\n
O\u2019Rourke stated that he had attempted to \u201cresolve this issue amicably,\u201d including offering compensation and voluntarily committing to remedial work that could have resolved the problem many years ago.<\/p>\n\n\n\n
However, according to him, the developer\u2019s management company failed to \u201cengage constructively\u201d on the matter.<\/p>\n\n\n\n
Explaining the reason for sending the letter on February 21, Laing O\u2019Rourke stated: \u201cGiven the high-profile nature of the legal case, we simply wanted to keep our clients, partners, and suppliers informed, as we regularly do on many matters.\u201d<\/p>\n\n\n\n
\u201cLaing O\u2019Rourke Construction South has not engaged in commercial activity since 2011, held no assets, and was an inactive subsidiary of Laing O\u2019Rourke. Its liquidation will have no impact on the group\u2019s operations.\u201d<\/p>\n\n\n\n
A One Hyde Park representative stated that \u201cLaing O\u2019Rourke\u2019s proposals for remedial work included unacceptable conditions, and the offered compensation was insufficient to fund these works via a third party.\u201d<\/p>\n\n\n\n
He added: \u201cIt is extremely disappointing that after 10 years of our attempts to find a resolution, Laing O\u2019Rourke\u2014a company with \u00a34 billion in revenue\u2014liquidated its subsidiary just days before the court hearing. They actively contested the claim throughout the entire process, spending significant sums on legal fees, yet at the moment when our claim and \u00a335 million compensation demand were due to be heard in court, the company effectively avoided responsibility.\u201d<\/p>\n\n\n\n
\u201cThis case has been thoroughly investigated by independent experts. The findings clearly confirm the presence of defective installations covered under the additional warranty provided to One Hyde Park in 2010. These defects were identified as early as 2014, and over the past decade, Laing O\u2019Rourke has periodically carried out repair work but has consistently refused to agree to a fair settlement.\u201d<\/p>\n\n\n\n
\u201cOn February 27, we submitted a request to the court to issue a ruling in support of our claim for damages. We eagerly await the judge\u2019s decision in the near future.\u201d<\/p>\n","protected":false},"featured_media":5078,"template":"","acf":[],"yoast_head":"\n