In light of the current economic downturn in Ireland, many companies are now facing financial difficulty. This has increased the number of companies applying to the courts to seek examinership.
Examinership is a legal process where the protection of the court is granted to help the survival of a company experiencing financial difficulty.
If your company is in examinership, there can be no winding up proceedings made against the company, there can be no appointment of a receiver, or no attachment against assets or no attempt to retain the title agreement.
Who can present a petition for Examinership
- A company
- The Directors
- Any secured or unsecured creditor
- Shareholders with more than a 10% shareholding
Advantages of Examinership
- It gives your company protection against its creditors.
- It allows your company to trade and to attract investment.
- It helps your the company to restructure by making provision for investment.
- It facilitates any scheme of arrangement with the creditors of your company.
- It won’t enforce personal guarantees against you as Director in the majority of circumstances.
Statutory Requirements for Examinership
- Your company must have a ‘reasonable prospect of survival’.
- Your company must secure sufficient investment sufficient to facilitate a scheme of arrangement
- The independent accountant must confirm that there is no deficiency in the finances of your company that is not accounted for.
- Your company must have sufficient funds to trade throughout the period of protection.
- An independent accountant must supply the Court with the necessary cash flow projections and statements of affairs to vouch the conclusions drawn in his report.
If your company is experiencing financial difficulty but has a reasonable prospect of survival, our aim is to find an alternative to winding up your company.
Healy O’Connor Solicitors LLP Corporate Recovery can bring an application to appoint an examiner to your company on your behalf. This will allow your company breathing space and protect it from any legal action that may be taken by its creditors for up to 100 days. You can contact us on our Freephone number on 1800 54 54 54 or email us at email@example.com