In ACC Loan Management Limited -v- Rickard [2017] IECA 245, the Court of Appeal ruled on two important aspects of the High Court's jurisdiction to appoint a receiver by way of equitable execution over the property of a judgment debtor. In a decision which will assist lending institutions and other creditors in assessing their enforcement options to satisfy outstanding judgments, the Court has eliminated some of the confusion which had existed in Irish law in respect of the circumstances in which a receiver may be appointed by way of equitable execution and has confirmed that:

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Examinership

A number of significant decisions were made by the High Court and Court of Appeal relating to different aspects of the examinership process in 2017. 

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Introduction

There are two principal mechanisms for the dissolution of a solvent Irish company:

  • Voluntary Strike-Off (VSO); and
  • Members' Voluntary Liquidation (MVL).

To the extent there are other Irish or EU entities in the group, it may also be possible to dissolve the company by way of merger with another group entity.

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The High Court delivered a stark reminder to personal insolvency practitioners (PIPs) that they serve an integral role in upholding the legitimacy of the bankruptcy process in a judgment delivered on 5 February 2018.

Background

The judgment arose out of an application by the Official Assignee (“OA”) to postpose the automatic discharge of a bankrupt. The OA submitted that the bankrupt had hidden assets from or failed to disclose assets which could have been realised for the benefit of the creditors of her estate.

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Costello J in the High Court recently gave judgment in the case of In re James Coady (a Former Bankrupt) [2017] IEHC 653. In this case the Official Assignee ("OA") had sought directions in respect of what rights could vest in the OA from the bankrupt's pre-retirement personal pension policy (the "PP"). The bankrupt had reached normal retirement age under the PP after he was adjudicated bankrupt but before he was discharged from bankruptcy.

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A recent High Court ruling which examined the practice of creditors entering into a "split mortgage" or warehousing agreement with debtors as part of a personal insolvency arrangement ("PIA") (pursuant to the Personal Insolvency Act 2012) is likely to result in banks reconsidering warehousing as a "go to" option when entering into PIAs with defaulting debtors.

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Litigation & Dispute Resolution

A recent decision of Judge Susan Ryan in the Dublin Circuit Court is likely to have a substantial impact on debtors seeking to enter into a Personal Insolvency Arrangement (‘PIA’) with their creditors.

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In line with a recent decision of Judge Susan Ryan in the Dublin Circuit Court (further details of which can be found here), the High Court has held that only a Personal Insolvency Practitioner (“PIP”) has standing to apply to the Circuit Court for a review of a creditor’s rejection of a Personal Insolvency Arrangement (“PIA”).

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In Reilly & Personal Insolvency Acts 2012-2015 [2017] IEHC 558, Baker J, 5 October, 2017, the High Court held that applications to Court under Section 115A of the Personal Insolvency Acts 2012-2015 (the Acts), for approval of a Personal Insolvency Arrangement (PIA) despite its rejection by creditors, must be made by a Personal Insolvency Practitioner (PIP) and not by the Debtor themselves.

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