The economy went into recession in the first half of 2008. By the end of 2008, as a whole, growth had contracted by 1.5%. Within the same time period tax receipts fell by 11.5%.

Most analysts expect 2009 to be a worse year than 2008. GDP is expected to fall by 2.5%.

Few financial analysts would predict a recovery until 2010 at the earliest. Consumer spending has contracted hugely from the days of the Celtic Tiger and this is the fundamental reason for the difficulties at the individual company level.

The following table from AIB Global Treasury summarises some of the key ratios which are now going in the wrong direction.

Economic Outlook For The Republic Of Ireland
(% real change unless stated otherwise)

Source: Allied Irish Banks, Global Treasury.

Against this worsening economic backdrop companies and individuals will face mounting financial challenges. Some sectors will be particularly adversely affected. These sectors include:

Many companies are already alert to the dangers and are working on a range of strategies to counteract the downturn. These include:

Whether you or your company are looking at cost cutting, restructuring, business rescue or winding-up you will need the expertise of strong rescue and insolvency practitioners.

Horwath Bastow Charleton’s dedicated team of business rescue specialists have a wealth of experience assisting businesses and individuals across a range of sectors and industries. We have worked closely with business owners and all major creditors – including large banking institutions and the Revenue Commissioners - ensuring all legal requirements are met, no fraudulent preference is displayed and the most appropriate action is taken when businesses or individuals are faced with financial difficulties.

The Business Rescue team at Horwath Bastow Charleton Limerick are active in, the following major areas:

Insolvency & Winding-Up

Non-Insolvent Restructuring

Business Rescue

We have devised a quick diagnostic assessment for companies experiencing difficulty. We have a series of tests which we use to determine what we believe is the appropriate course for the company in question to take. We will carry out this assessment free of charge and on a no committal basis for companies. It may well be that an informal restructuring is more appropriate (particularly if it is a smaller company) and we have successfully carried out a number of these.

As a means of familiarising yourself with the procedures around rescue and insolvency please click here for two presentations which Brian McEnery gave on behalf of the ACCA:

Insolvency & Business Rescue - Powerpoint Presentation

Insolvency & Recovery - Powerpoint Presentation

For further information please contact:

Brian McEnery
E: bmcenery@hbcl.ie

Eoin Ryan
E: eoinryan@hbcl.ie