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THE NEED
Examinership is a corporate rescue mechanism which gives a company the breathing space (through the Examiner) to put a rescue package together. The initial legislation was introduced in 1990, and was significantly amended in 2001.

Examinership can often produce greater benefits for all parties – owners, creditors and employees - rather than liquidating the company. While it is a more onerous task for the insolvency practitioner, here at Horwath Bastow Charleton we are committed to using the legislation to its best effect and pursuing rescue when feasible. We have a track record of achieving creditor approval for schemes of arrangement which often result in a better recovery on liabilities than provided by liquidation proceedings.

The number of companies seeking Court protection rose from 6 in 2005 to over 50 in 2008. Examinership is a valuable resource in turning around companies while also benefiting creditors. At its essence is the court protection period, a 70 day grace period during which the company is protected from its creditors. This gives the company the necessary breathing space to produce a viable plan to both pay its creditors and address its trading issues, thus avoiding liquidation.

CREDENTIALS – CASE STUDY

In 2005, Horwath was approached by ABC Engineers after other practitioners had recommended winding-up the company and placing it in liquidation. ABC Engineers was a well-established company, in operation for ten years with a turnover of circa €30M and 200 employees. The directors felt the company was worth saving. They also had personal investments and interests in the company and did not wish to see it go under. We examined the reasons for the distress and determined the company was sustainable if a major one-off issue could be put behind them and some alterations were made to the management team. We felt the route of Court Examinership was the most appropriate option. For 70 days (the Court protection period) we worked at putting a scheme of arrangement together which was overwhelmingly approved by the creditors of the company. This scheme was approved by the High Court and the company lived to fight another day, and has indeed fared well since its Court protection was lifted.

FEATURES OF OUR SERVICE

At Horwath Bastow Charleton Brian McEnery will examine:

Based upon the assessment of the factors above, Horwath can commence the Examinership process by assisting in the preparation of the petition for securing the protection of the High Court for the company.

BENEFITS

At Horwath Bastow Charleton we are experienced in bringing companies through the Examinership process. We can quickly assess the situation and advise on whether Examinership is the most appropriate avenue. Having undertaken numerous Examinerships in the past we can efficiency expedite proceedings ensuring all legal requirements are met.

For a presentation on Examinership please click here

For further information please contact:

Brian McEnery
E: brianmcenery@hbcl.ie