The current market volatility has impacted on all companies operating in the financial sector, and Irish companies and financial institutions are no different. Recently, there have been two high-profile cases involving Irish companies which have sought the protection of the Irish courts in order to attempt to restructure their debts and to deal speedily with financial problems encountered due to market downturn. This article discusses how the examinership regime in Ireland has been used to afford those companies the chance to restructure and survive.
Examinership was introduced in Ireland in 1990 by way of the Companies (Amendment) Act 1990. It affords a mechanism for companies which have become insolvent to gain the protection of the court from their creditors in order to determine whether there is a possibility to restructure and survive, thereby escaping formal insolvency.
