The bankruptcy of the Mt. Gox cryptocurrency exchange in 2014 was a pivotal moment in cryptocurrency history. It demonstrated the vulnerabilities of early cryptocurrencies and saw the worst fears of the industry become a reality. However, in the years since it has also provided an excellent example of the successful tracing and recovery of a variety of asset classes. Creditors have recently received the first distributions from the recovered assets of Mt Gox, in stark contrast to the initial claims that access to the assets had been lost forever.
Background
The Companies (Rescue Process for Small and Micro Companies) Act 2021 was enacted in December 2021 to provide a more cost-effective restructuring process for smaller companies in Ireland (SCARP). It has a wide range of features which provide excellent opportunities to assist businesses in difficulty, in a similar format to Examinership but without the cost of the associated court hearings.
Process
In July 2022 the European Union (Preventive Restructuring) Regulations 2022 (the Regulations) were signed by the Minister for Enterprise, Trade and Employment.
What is SCARP?
On 7 December 2021, the Companies (Rescue Process for Small and Micro Companies) Act 2021 (SCARP) came into operation.
Introduction
Cryptocurrency has become a major talking point and an accessible investment option for retail investors. As it has become mainstream, and the ownership of cryptocurrency has become easier and more user friendly, the value associated with most cryptocurrencies including Bitcoin, Ethereum and Nano has seen huge gains.
The filing of winding up petitions and appointment of provisional liquidators in the matters of Oasis Fashions Ireland Limited and Warehouse Fashion Ireland Limited.
Introduction
The landscape within which business is conducted has changed drastically due to the COVID-19 pandemic and the subsequent Government restrictions.
A recent decision of the Supreme Court to award legal costs against a director of an insolvent company demonstrates the Courts' approach to directors who do not act in good faith and seek to use litigation through the company for their own personal benefit.
The High Court recently considered the scope of an interim examiner's powers in Re M.D.Y. Construction Ltd [2018] IEHC 676.
Binding actions by the Interim Examiner
Of interest to the High Court was the timeline within which certain actions were taken by the interim examiner appointed to M.D.Y. Construction Limited (the Company). Prior to confirmation of his appointment as examiner, the interim examiner entered into a binding investment agreement with a third party to fund proposals for a scheme of arrangement.