On 20 May 2015 the European Parliament adopted a recast of the European Insolvency Regulation. The Recast Regulation is in line with the EU’s current political priorities of promoting economic recovery and boosting growth and employment. The key objectives of the Recast Regulation are to move away from the traditional liquidation approach towards more of a “second chance approach” for businesses and entrepreneurs in financial difficulties, and to enhance cooperation and coordination in cross-border insolvency proceedings. 

Scope

On 15 April 2014 the European Parliament voted in favour of the European Commission initiative for a Regulation establishing a European Account Preservation Order (EAPO) to simplify EU cross-border debt recovery in civil and commercial matters. This legislation aims to establish a procedure whereby the courts of EU member states can issue orders preserving or “freezing” bank accounts across the EU without the need for any intervention by the courts of any other member state.

The High Court has confirmed that leave of the Court is required before an application can be brought to cross-examine an Official Assignee (In re Sean Dunne, A Bankrupt [2014] IEHC 113).

Background

In the matter of Shellware Limited (In Liquidation) 2014 IEHC 184

On 1 April 2014 Barrett J. refused an application by the Liquidator of Shellware Limited (In Liquidation) for the restriction of Mr Eoghan Breslin, a former director, under Section 150 of the Companies Act 1990. This decision also helpfully provides clarity regarding applications for an extension of time for the filing of a Report by a Liquidator to the Director of Corporation Enforcement under Section 56 of Company Law Enforcement Act 2001 (“Section 56 Report”). 

In Re Citywest Hire Ltd (In Liquidation)

Myles Kirby was appointed as Official Liquidator of Citywest Hire Limited (In Liquidation) (“Citywest”). Citywest had operated Il Segreto Restaurant on Merrion Row, Dublin 2 until late June 2013.

In its decision in In re Davis Joinery Ltd [2013] IEHC 353, the High Court identified the difficulties that employees of corporate employers may face when their employer ceases trading without taking any steps to formally wind-up the company.

An order providing for the commencement of certain provisions of the Personal Insolvency Act 2012 brings the following three new debt settlement arrangements into operation with effect from 31 July 2013:

The High Court has made an order disqualifying the two directors of Mossway Limited (In Liquidation) for a period of 12 months.

Background

The principal business of the company had been the provision of haulage services with a warehousing and distribution facility. On 3 June 2011, the Revenue Commissioners presented a petition to wind up the company on the basis that it was unable to pay its debts as they fell due. The Court made the order sought and appointed an Official Liquidator.

The manner in which creditors’ meetings are conducted can often be as significant as the actual outcome of the meeting.  A good example of this can be seen from the recent High Court decision in In re Mountview Foods Ltd (In Voluntary Liquidation) [2013] IEHC 125.

Section 222 of the Companies Acts 1963 provides that leave of the High Court must be obtained in order to bring or prosecute proceedings against a company which is the subject of a winding-up order.  In In re MJBCH Ltd: Mary Murphy [2013] IEHC 256, the High Court confirmed it has jurisdiction to grant leave retrospectively under this section.