Examinership basically provides for a court enforced moratorium on any action that may be taken by a creditor for a set period of time during which the examiner will attempt to restructure the company.
Examinership
Examinership basically provides for a court enforced moratorium on any action that may be taken by a creditor for a set period of time during which the examiner will attempt to restructure the company.
The purposes of the examinership is to facilitate the restructuring of potentially viable companies which are or are nearly insolvent.
An examiner is appointed who is in charge of putting proposals for a scheme of arrangement in place between the company and its creditors. It should be noted that day to day operations throughout the protection period will remain with the directors and management of the company.
The process begins by way of petition to the High Court to nominate an examiner. It is accompanied by a report from an independent accountant which will contain a statement of affairs of the company and an opinion as to whether the proposals offer a reasonable prospect of survival of the company.
The moratorium on any creditor action, as we have called it, begins when this petition is filed in the High Court. A petition can be filed by the company, directors, shareholders (holding at least 10% share capital) or creditors and is done on an ex parte basis ie without notice to anyone.
If
appointed, the examiner has a fixed period of 70 days (which may be extended to
100 days if required) within which to prepare a scheme of arrangement. This
must be approved by at least one class of the company’s creditors. The scheme
is then presented to the Court, which has discretion as to whether it will be
approved.
Proposals will generally involve fresh investment and/ or writing down of debt. From a creditors point of view, any writedown of debt by an examiners scheme will generally not leave them in any worse position than if the company had been liquidated or placed in receivership. The examiner requires 50% plus one in number and value of a creditors meeting in favour of the scheme of arrangement before he can seek the courts approval. At hearing the court will hear from creditors who vote against the scheme.
If the court decides to confirm the scheme of arrangement, they become binding on the company from a date set by the court.
Advantages of Examinership
For further information on examinerships please contact Cosgrove Gaynard Solicitors on 01 234 0044 or by email at info@cgsolicitors.ie .
Are you buying or selling property in Ireland? Whether you're a first-time buyer, a seasoned investor, or navigating a complex property dispute, Cosgrove Gaynard Solicitors offers the trusted legal guidance you need. As a top-rated property solicitor in Ireland, we provide comprehensive and client-focused property law services tailored to your needs.
Text LinkLooking for a reliable solicitor in Dublin? Whether you're facing a legal dispute, buying a property, or need professional advice, having an experienced Dublin-based solicitor on your side is essential. At Cosgrove Gaynard Solicitors, we offer comprehensive legal services tailored to individuals, families, and businesses across Ireland’s capital.
Text LinkPurchasing property in Ireland remains a significant milestone, whether you're a first-time buyer, upgrading your home, or investing in real estate. As we progress through 2025, understanding the current landscape is crucial to navigating the process effectively.
Text LinkWhen entering into a commercial lease in Ireland, understanding the key clauses of the agreement is crucial for both landlords and tenants. These clauses define the rights, obligations, and liabilities of each party, and can have long-term implications for your business. This guide outlines the most important clauses found in Irish commercial leases, helping you to make informed decisions and avoid costly disputes.
Text LinkSuffering a road traffic accident abroad can be a traumatic experience—made even more stressful by the legal complexities that follow. For Irish residents who have been injured in a road accident while on holiday outside Ireland, it is possible to bring a claim in Ireland without having to travel abroad or use lawyers abroad, in certain circumstances. The key issue is jurisdiction, which refers to whether Irish courts have the legal authority to hear your case. Under EU regulations and international private law, if the at-fault driver or their insurer has a presence in Ireland or is domiciled in an EU member state, you may be able to bring your claim in the Irish courts.
Text LinkBuying or selling property in Ireland? Discover why hiring a property solicitor is essential for a smooth, legal, and stress-free transaction. Get expert tips today.
Text Link39 Waterloo Road,
Dublin 4
DX 109060 Fitzwilliam
Phone: 01 234 0044
Fax: 01 234 0047