Examinership, the process, practical issues & outlook
Examinership affords an opportunity to a company and its directors to recalibrate an established business with a significantly stronger balance sheet.
Getting early advice, guidance and direction throughout the process will safeguard for a successful outcome. James Anderson, a Director in Deloitte’s Restructuring Services discusses.
Examinership is Irelands corporate rescue process which gives an insolvent Company (or group of Companies) protection from its creditors for a period of up to 100 days. The protection afforded under examinership legislation is to facilitate a Company (through a Court appointed Examiner) secure investment and put a legally binding scheme of arrangement in place for the settlement of debts with its creditors.
Once a Company has been placed in examinership by the Court, this prevents any enforcement through either the appointment of a liquidator or a non- statutory receiver. A Company can utilise the examinership legislation to overturn the appointment of a Receiver but there is a very narrow window of time to do so.
When a Company successfully exits the examinership process, the Company continues trading with the business and assets intact, jobs saved but without the majority (or in some cases any) of the liabilities accumulated prior to entering the examinership.
The opportunity which examinership affords for Companies to restructure is invaluable. Getting early advice prior to and guidance throughout the process is critical to a successful outcome.
Read the full article to understand more about the process, practical issues and outlook of an Examinership.
‘Obtaining a practical understanding and clear direction on each of the three distinct stages of the process; entry, during and exit is paramount to a successful outcome’