Examinership has been saved
Decide the best option for your company
We are acutely aware that the pandemic has put unprecedented pressure on many previously healthy businesses and it is our mission to help save them. Our team of experts are currently supporting businesses across Ireland to manage and mitigate the risks associated with COVID-19. Deloitte has a very successful track record of saving companies in financial difficulty through the process of examinership.
- What is an Examinership?
- Who should consider them?
- What is the process of an Examinership?
- What are the advantages of an Examinership?
- How can Deloitte help?
What is an Examinership?
Examinership is a process used by a company in financial difficulty to reach a binding agreement with its creditors that typically involves a significant portion of its debts being written off by the company’s creditors.
Crucially the company is protected from its creditors by the court during the examinership period. This protection gives breathing space for the company to find fresh investment and for an agreement to be put in place.
Examinership can be used by any company in financial difficulty, including SMEs where it is now a viable option to consider due to it being made significantly cheaper and more flexible by The Companies Act, 2014.
Who should consider them?
- Companies struggling with large debts
- Companies needing to restructure
- Companies experiencing trading difficulties
- Companies under pressure from their creditors
- Companies wanting to avoid liquidation
What is the process of an Examinership?
- The company applies to court for protection from its creditors and the appointment of an Examiner
- The Examiner draws up proposals to put to the company’s creditors in the form of a Scheme of Arrangement
- The Scheme is sent to its creditors, together with notice of a creditors meeting
- Meeting held where the Examiner explains the proposals in the Scheme
- Creditors vote in favour of Scheme
- Court approves Scheme
- Debts written down as per the Scheme’s proposals
What are the advantages of an Examinership?
- Avoids liquidation
- Large write downs of debt can be achieved
- Leases can be re-negotiated/ disclaimed
- Company continues trading
- Directors stay in control of the company during examinership
- Gives the company time to be restructured
- Protection from creditors – a receiver or liquidator cannot be appointed
How can Deloitte help?
We regularly act as Examiners for companies of all sizes. Deloitte’s deep knowledge and experience of the examinership process enable us to guide you through every step of the process to ensure that the examinership has the best possible chance of success and that the process goes quickly, smoothly and cost effectively.