Press releases

Regional based pharmacy group, Otheca Group, successfully exits examinership

Examinership process and Small Companies Administrative Rescue Process will be important options for companies impacted by the pandemic

The Otheca Group, which consists of a group of regional pharmacies in the Wicklow area, has successfully exited examinership following a court hearing yesterday. The group entered examinership on the 8 October 2021. The Examiner, Mark Degnan, Partner at Deloitte, has been working on a viable scheme of arrangement for the group since this date.

The court approved the scheme presented by the examiner, which had broad support from all classes of creditors across the group. The successful scheme will see Niall O’Kane and Niall Duggan take control of the group and all employees being retained as part of the restructure. Creditors in two of the pharmacies saw returns averaging 95% of their pre-petition liabilities, with an average of 63% in another of the group companies.

Commenting on the scheme, the examiner, Mark Degnan, stated:

“I was delighted to be able to present such a strong scheme of arrangement across the group, and to its creditors, for approval last week. Additionally, the support of key suppliers and retail brands throughout the process allowed such a strong scheme be presented, with the companies receiving continued support from Bank of Ireland throughout, as the main secured lender in the group.”

The outcome of the scheme demonstrates the effectiveness of the examinership legislation for companies. The introduction of the new Small Companies Administrative Rescue Process (SCARP), which is broadly based on the examinership legislation, provides companies with another option to restructure their balance sheets.

Mark Degnan, Financial Advisory Partner at Deloitte Ireland commented:

“Given the impact of the pandemic on the economy, having a number of options available will be key to many businesses surviving. In light of the current trading environment it will be important for companies, their boards and management to act early and consider any steps they may need to take as we start the recovery process across multiple sectors of the economy. As government supports unwind and the true impact of the pandemic becomes clear, having a robust and independent view of your business will be key to making decisions in a quick and effective manner, while preserving value for all stakeholders.

“The successful examinership process of the Otheca Group is a clear example of all stakeholders working together in order to maximise an investment into a company with underlying stress, in order to ensure its future viability and ongoing trade.”

ENDS

 

Issued by Murray on behalf of Deloitte Ireland

For Further Information Please Contact

Orna Clarke
Murray
01 498 0300
087 677 0360
oclarke@murraygroup.ie

 

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In this press release references to Deloitte are references to Deloitte Ireland LLP. The information contained in this press release is correct at the time of going to press. Deloitte Ireland LLP is the Ireland affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent entities. DTTL and Deloitte NSE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.
 

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