The Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 (the Act) provides enhanced protections for employees in insolvency situations.

Responsible Person

The High Court recently delivered a significant and precedent-setting decision in the matter of MAC-Interiors Limited [2023] IEHC 395 on the jurisdiction of the Irish courts to appoint an examiner to a foreign-registered company.

A precedent decision

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.

The EU (Preventative Restructuring) Regulations 2022 (the Regulations) were signed into law on 27 July 2022. The Regulations largely focus on the examinership regime in Ireland which is already very comprehensive. However, the Regulations also include amendments to the Companies Act 2014 (the Act) in certain areas including codifying the duty of directors to have regard to creditor’s interests when facing insolvency.

Changes to the Act

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.

A recent judgment finds a Personal Insolvency Arrangement (the PIA) is not permissible where the term of the restructured loan is likely to exceed the lifespan of the debtor.

The key facts

The PIA in question involved a mortgage term extension of 372 months (ie 31 years) which would have required the Debtor to continue making repayments until she was 98 years of age which is well beyond the Central Bank's recommended age of 70 years of age.

This case is significant as it involved the appointment of an Examiner to Norwegian Air Shuttle ASA (NAS) a company incorporated in Norway with its centre of main interests in Norway rather than Ireland.

The Norwegian Air Group comprised 65 companies and the protection of the Court was sought in respect of 5 Irish incorporated companies (the Petitioners) and NAS the ultimate parent company in the Group.

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.