COVID-19 is an unexpected shock for many businesses. Some businesses are being significantly affected, particularly those in the travel and hospitality sectors. We consider some of the options open to otherwise good businesses facing cash-flow and other financial issues as a result of COVID-19.

How are governments dealing with COVID-19

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.

With the measures in place to deal with the COVID-19 situation, volatility and disruption continue to affect Northern Ireland. As a leading full-service law firm, Arthur Cox is ideally placed to mobilise multi-disciplinary teams of lawyers to provide advice and support to organisations.

Businesses in all sectors are facing very challenging times arising from the outset of, and reaction to, the Coronavirus (COVID-19). With the challenges in some instances being unprecedented, directors of affected companies need to be cognisant of their duties especially around decisions they are looking at making to get through current difficulties

We are delighted to publish the latest edition of our newsletter, Compliance Agenda. It contains a round-up of all the latest legal updates of interest to Company Secretaries, Company Directors and Compliance Officers.

Involuntarily struck off, can I bring my company back to life?

Background

Ray & Danny Grehan (theGrehans) acquired property in Maynooth on which subsequently the Maynooth Business Campus (the Campus) was built.

It is almost 30 years since the commencement of the Companies (Amendment) Act 1990 (the “1990 Act”) which introduced the concept of Court protection for certain companies from their creditors to allow a formal restructure of a company’s debt. The examinership process is now governed by Part 10 of the Companies Act 2014 which mirrors the procedure provided for in the 1990 Act.   

Examinership process  

In McKillen v. Wallace (In re Irish Bank Resolution Corp. Ltd.), 2019 WL 4740249 (D. Del. Sept. 27, 2019), the U.S. District Court for the District of Delaware had an opportunity to consider, as an apparent matter of first impression, whether the U.S. common law "Barton Doctrine" applies extraterritorially. One of the issues considered by the district court on appeal was whether parties attempting to sue a foreign representative in a chapter 15 case must first obtain permission to sue from the foreign court that appointed the foreign representative.

Summary

This matter related to a High Court appeal brought by two high profile debtors against a Circuit Court order made in favour of Tanager Designated Activity Company (Tanager) which allowed Tanager to enforce an order for possession notwithstanding the fact that a protective certificate was in place in respect of the debtors.

The Personal Insolvency Act 2012 was enacted with the aim of throwing a lifeline to debtors, many of whom may be in arrears on mortgage loans secured against their principal private residence.