Ireland: Rescue procedures in insolvency

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. 

The most recent annual report of the Courts Service showed that 2019 had slightly more examiner cases at the High Court than in the previous year, which indicates it is still being utilised as a means of negotiating onerous tenancy arrangements.

With the onset of the 2020 COVID-19 pandemic, the government legislated to lengthen the duration of examinership to try and boost its chance of success. This will be in place until 31 December 2021.