The Irish Examiner publication is the latest business to be restructured using a so called pre-pack insolvency transaction. “Pre-pack” transactions have been a feature of insolvency sales in other countries such as England and Wales for some years, but until relatively recently had not commonly featured in Irish insolvencies. It has been reported that at least one creditor has initiated proceedings to challenge the Irish Examiner transaction.
The Personal Insolvency Act 2012 was signed into law on 26 December 2012. The Act provides for the introduction of three new non-judicial debt settlement arrangements and reforms to the current bankruptcy legislation.
The high profile liquidation of Custom House Capital Limited (In Liquidation) continued in 2012. Following a successful exercise to reconcile and confirm the position regarding certain client assets, the liquidator of the company proposed applying a fee of 0.5% when transferring the assets to clients to cover the costs of the reconciliation exercise.
Amantiss Enterprises Limited and Wilbury Limited were placed into creditors’ voluntary liquidation in 1994. Following the appointment of a liquidator, proceedings were issued by the two companies, together with a third company, Framus Limited, against a multitude of defendants including CRH plc, Readymix plc and Kilsaran Concrete Products Limited, alleging breaches of competition law.
In two cases decided towards the end of 2012, the High Court applied reductions to the hourly charge out rate of staff members employed by the liquidator who had been promoted during the course of the liquidation.
The High Court has recently held that a former employee of a construction company, which was in liquidation, had no reasonable cause of action against the company’s insurer. This was despite the fact that he had obtained judgment for negligence against the employer and the insurance policy covered the employer for such a claim in negligence.
1. Overview
Yesterday the Minister for Justice, Alan Shatter, and Director of the Insolvency Service of Ireland (“ISI”), Lorcan O’Connor, launched the ISI’s public information campaign, which includes guides to the three new personal insolvency arrangements, its website and an information helpline for queries.
The long awaited Personal Insolvency Act 2012 was enacted on 26 December 2012. It is expected to become operative in the third quarter of 2013. Once the Act is commenced there will be a State-run Insolvency Service to operate non-judicial debt settlement arrangements. The Act also reforms the existing bankruptcy procedure. The Act is of particular interest to financial institutions and trade creditors. Some debts ("Excluded Debts") cannot form part of insolvency arrangements e.g.
The Minister for Justice and Equality has made an order providing for the commencement of certain provisions of the Personal Insolvency Act 2012 with effect from Friday 1 March 2013.
The provisions to be commenced with effect from this date are as follows: