Belgard Motors has been saved
Supreme Court Decision 2015
Supreme Court ruling on Belgard Motors will allow for increased security for banks lending to trading businesses - Deloitte
Commenting on the ruling today by the Supreme Court to overturn a High Court decision regarding the priority of floating charges over preferential creditors in the liquidation of J.D.Brian Ltd and related companies, which traded as the Belgard Motors Group, Tom Kavanagh, Partner, Restructuring Services, Deloitte and liquidator to Belgard Motor Group said:
“Today’s ruling is very positive from a business point of view. Over the last number of years, we have observed many companies in Ireland struggle to raise capital, and with working capital challenges. This has been a significant contributing factor for many companies entering formal insolvency arrangements.
“This decision today means that banks will now feel more secure in lending to trading businesses. If the company fails the bank can crystallise the floating charge and rank ahead of the preferential creditors, leading to increased certainty on repayments.
“We look forward to seeing this have a positive impact on banks’ willingness to lend to the many viable Irish businesses who need support in terms of their working capital position.”
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