Ireland: Rescue procedures in insolvency

Ireland
Phase: Management
Liik:
Rescue procedures in insolvency
Viimati muudetud: 13 December, 2019
Omakeelne nimi:

Companies Act 2014

Ingliskeelne nimi:

Companies Act 2014

Artikkel

508-558

Kirjeldus

A company may enter examinership once its director(s) can prove that the company can no longer pay its debts. Successful applicants then have 100 days during which they are protected from creditors. This gives time for the company to try to obtain new forms of funding, or to make agreements with their creditors about alternative forms of repayment or new repayment schemes, which are not as hard on the company. Examinership differs from receivership in that the company itself applies for such restructuring measures. Under receivership protocol, the creditors apply to have a receiver appointed, which can lead to liquidation and redundancies as its primary focus is to recoup money for the creditors. 

Kommentaarid

Examinership is often a successful means by which to restructure a company, without having to resort to large-scale job losses. It has worked for several significant employers, particularly in the retail industry, such as B&Q and Debenhams. In 2017, approximately 1,000 jobs were saved through companies availing of examinership. Jobs are protected during both the examinership and receivership process: a 2017 Court of Appeal judgement in Brennan v Irish Pride Bakeries [2017 IECA 107] reiterated that employment contracts cannot be repudiated on account of the company being in receivership, i.e. a receiver cannot do what an employer cannot do in terms of adhering to an employment contract. 

According to the Courts service report 2018, the Examiner had approximately 126 ongoing cases, including legacy cases.

Cost covered by
Not applicable
Involved actors other than national government
  • Other
Involvement others
Creditors
Thresholds
No, applicable in all circumstances
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