The Companies (Miscellaneous Provisions) (Covid-19) Act 2020 (the Act) was enacted on 31 July 2020. The Act provides for some amendments to the insolvency regime, in addition to amendments to the Companies Act 2014 (the 2014 Act) to specifically provide for virtual general meetings and permitting the execution of documents under seal using counterparts.

Key Points

In a judgment delivered on 14 October 2020, Mr. Justice McDonald declined to confirm the appointment of an examiner to New Look Retailers (Ireland) Ltd (New Look).

Facts

A revised EU regulation applies to new insolvencies from 26 June 2017. Widely referred to as EIR Recast (EIR means European Insolvency Regulation), it replaces the regime that has been in place for over 15 years.

The official title of EIR Recast is Regulation 2015/848 of the European Parliament and of the Council of 20 May 2015. The commencement of EIR Recast is newsworthy for many reasons, not least because the United Kingdom (when it leaves the EU) will not have the benefit or the burden of the new regime.

Executive Summary

COVID-19 poses high levels of financial distress for Ireland and Irish business. Ireland's examinership regime (Examinership) and schemes of arrangement under part 9 of the Companies Act 2014 (Schemes) are effective tools for corporate restructuring either immediately and/or once the more immediate threat of COVID-19 has passed.

A recent decision of the Irish High Court puts the spotlight on Ireland as a key restructuring venue in the EU.

Mr Justice Barniville's thorough judgment is a clear endorsement of the use of Irish schemes of arrangement to implement complex cross border restructurings.

Part 9 Scheme of Arrangement