What is an Examinership? An Examinership is a process whereby the protection of the High Court is obtained to assist the survival of a company. It allows a company to restructure and it is an alternative to winding up the company in financial difficulties. The Examinership process was provided for in the Companies Act 1990.
What criteria are necessary for a successful examinership?
- Does the company have a reasonable prospect of survival?
- Does the company have investors ready to proceed with an immediate injection capital?
- Will the company have sufficient working capital to cover the period of Examinership?
- Are there sufficient assets in the company to cover the costs involved with an Examinership?
How is an Examinership Approved?
- The Creditors of the company must agree to accept a Scheme of Arrangement which is usually to accept a percentage of the debt.
- If the Creditors of the company agree to accept the Scheme of Arrangement, the High Court must then approve the Scheme of Arrangement.
How kavanaghfennell can help?
If you wish to discuss the Examinership process or corporate restructuring generally, please contact Tom Kavanagh, Ken Fennell or David Van Dessel.
