The Role of the Liquidator

The Department of Justice and Equality has announced that the Government is to introduce legislation before the summer recess giving Courts the power to review and, where appropriate, approve insolvency deals that have been rejected by banks. This process will represent a reform of the Personal Insolvency framework and "seeks to ensure that fair and sustainable deals are upheld for struggling borrowers willing to work their way out of difficulties with a view to keeping their family home."

Judgment by Cregan J of 6 October 2014

Overview

This case concerned an application by the official liquidator of RQB Limited (in liquidation) (the Company) pursuant to S280 of Companies Act 1963 to determine the legal status of a floating charge dated 10 September 2008 which entered into by the Company in favour of Danske Bank (the Bank) and which the liquidator believes to be unenforceable.

Background

The "2005 Facility"

In the matter of Fuerta Limited, High Court, 22 January 2014

Judge: Mr. Justice Charleton

A recent decision of the High Court has highlighted the interesting area of law that applies when an application is made to wind up a company on the grounds that it is "just and equitable" to do so.

Last week the Court of Appeal finished hearing the long awaited and much anticipated appeal in Jervis and another v Pillar Denton Limited (Game Station) on the hotly contested issue of whether rent is payable as an administration expense. Depending on the decision of the appeal judges this case may trigger a dramatic shift in the way that rent arising during administration is currently treated.

Background 

This Act provides for the winding up of IBRC, the appointment of a Special Liquidator and other connected matters. This legislation was signed into law by the President on 7 February 2013.

The Minister for Justice and Equality has brought more provisions of the Insolvency Act 2012 (the Act) into force and has designated 1 March 2013 as the establishment day of the Insolvency Service of Ireland.

Under the Personal Insolvency Act 2012 (Commencement) (No. 2) Order 2013, the following provisions of the Act came into operation on 1 March 2013:

The Minister for Justice and Equality has made an order which sets the 18th day of January, 2013, as the date on which Part 6 (Specialist Judges of the Circuit Court) of the Personal Insolvency Act 2012 comes into operation.

The Personal Insolvency Bill has now passed through the Dail and will commence in the Seanad. The Minister for Justice has commented that the intention is still to have the Bill enacted by Christmas.

On 26 December last, the Personal Insolvency Act 2012 was signed into law by the President.

The various provisions of the Act will come into force through commencement orders which will be made by the Minister for Justice. It is expected that certain sections of the Act relating to its Establishment Day and related provisions, will be commenced shortly.

The remaining provisions will then come into operation on a phased basis under Section 1(2) of the Act, as designated by orders to be made by the Minister.