Business Rescue Options

Home , Examinership, Liquidation, Receivership, Scheme of arrangement

Examinership Salvaging a business from Liquidation or Why use it? Who uses it? Receivership A very effective option for companies Any corporate entity (already struggling with excessive debt but insolvent or likely to become Where restructuring options have a solid underlying business. insolvent) with a reasonable prospect are not viable, possibly due to of survival. insufficient investment funds, Examinership gives companies Liquidation or Receivership can the breathing space to find fresh How it works be used as a very effective tool investment and negotiate a • The company applies to court for to rescue the trading business compromise with creditors. protection from creditors and the of an insolvent company. In appointment of an Examiner addition, the Directors of • Company continues trading • The company sends out the the insolvent entity are not • Directors stay in control during Scheme to creditors precluded from acquiring the examinership business and assets of the • Meeting of creditors • Immediate protection from liquidated entity or company in creditors • Creditors vote (only a simple Receivership, once appropriate majority of one class of creditors is procedures are followed. • Debts are restructured required)

• Leases can be re-negotiated & • Court approves scheme disclaimed (e.g. brick & mortar Early action by retailers) • Debts are restructured Directors is the primary Company returns to normal • controllable factor in a successful turnaround Part 9 Scheme of Arrangement

Why use it? Who uses it? Contact A similar process to Examinership • Investment Holding Companies If you have any questions regarding that can be used by a company to • Trading Companies (ideally with this communication please do not reach a binding settlement with its small numbers of voting creditors) hesitate to contact us. creditors.

How it works It has the advantage of lower costs David Van Dessel than Examinership, but has a higher • The company draws up scheme of Partner bar for creditor approval. arrangement Financial Advisory | Restructuring Services • Company continues trading • The company sends scheme proposals to creditors [email protected] • Directors stay in control +353 1 417 8805 • Meeting of creditors • Immediate protection from Ken Fennell creditors (on request, excluding • Creditors vote (50% in number & Partner secured creditors) 75% in value required for each class of creditor) Financial Advisory | • Debts are restructured Restructuring Services • Court approves scheme [email protected] • Debts are restructured +353 1 417 8803