Examinership is a legal process designed to help struggling companies avoid liquidation. It allows a company to seek protection from its creditors while it works on a recovery plan.
Examinership is a legal process designed to help financially distressed companies that still have the potential to be viable. It can provide your company with a period of protection from creditors, allowing you to restructure operations, renegotiate debts, and secure new investment. The primary goal of Examinership is to save the company and preserve jobs, offering a chance for recovery and future profitability rather than leading to liquidation.
To qualify for examinership, a company must meet certain criteria:
A petition is filed in the High Court or Circuit Court (for small companies) along with an independent accountants report, outlining the company’s financial position and chances of survival.
The court assesses the case and decides whether to grant examinership. If approved, the company is given court protection. An examiner is formally appointed.
The examiner works with the company to prepare a scheme of arrangement, detailing how the company plans to restructure and repay creditors. This may include negotiating with creditors to write down debts, reducing costs, or bringing in new investment.
If the court approves the scheme, the company implements it under the examiner's oversight. Upon successful completion, the company emerges from examinership as a going concern.
Examinership is a legal process in Ireland designed to help insolvent companies restructure and survive. It provides court protection from creditors for a limited period, allowing the company to reorganise its affairs and seek new investment.
Any company that is insolvent or likely to become insolvent can apply for Examinership. The application is usually made by the company itself, its directors, or a creditor.
The company is protected from legal actions by creditors during the Examinership period. It allows the company to restructure its debts and operations. The process can attract new investment to help the company return to viability.
The initial period of Examinership is 70 days, which can be extended to a maximum of 100 days. In exceptional circumstances, this period can be extended further.
The Examiner is an independent professional appointed by the court. Their role is to assess the company’s viability, negotiate with creditors, and formulate a scheme of arrangement to restructure the company’s debts.
If the Examinership is successful, the company will emerge from the process with a restructured debt profile and a viable business plan, allowing it to continue trading and avoid liquidation.
If the Examinership fails, the company may be placed into liquidation, and its assets will be sold to pay off creditors.
During Examinership, employees continue to work as usual. The process aims to save jobs by restructuring the company and ensuring its survival.
Not every company will be eligible. The company must demonstrate a reasonable prospect of survival as well as the ability to restructure its debts.
McCambridge Duffy can provide expert guidance and support throughout the Examinership process, from preparing the petition to negotiating with creditors and formulating a viable restructuring plan.
At McCambridge Duffy, we specialise in guiding your company or your client through the Examinership process. As experienced Insolvency Practitioners, we take on the role of Examiner, ensuring that the process is handled efficiently and successfully.
At McCambridge Duffy, we guide you through every step of the examinership process, from initial consultation to successful restructuring and recovery. Our experienced team ensures a smooth and effective process, helping your company emerge stronger and more viable.
Before contacting us, it’s important to complete some preparatory work:
Get in touch with us today to explore how we can support your business or your client through examinership and beyond.
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Click the button to find out more about the CVL process, or contact us for a free and confidential consultation.
