The number of company insolvencies in 2023 increased by over a third compared to 2022. The hospitality sector was particularly badly affected, with 53% more insolvencies than in 2022.

It appears that 2024 will be similarly challenging for companies in the hospitality sector. The Restaurant Association of Ireland (RAI) has set out the main challenges faced by the industry, including increased energy and labour costs, and the VAT rate reverting to 13.5% after having been reduced to 9% during the covid-19 pandemic.

The High Court has reaffirmed the test to be applied in considering an application to dismiss a bankruptcy summons grounded on a judgment.

The bankruptcy process in Ireland involves multiple steps and the debtor can seek to bring it to a halt at each step. Debtors often seek to rerun effectively the same arguments at each step, ignoring previous findings by the courts. One such step is an application to dismiss a bankruptcy summons.

The Irish High Court has determined that the liquidation of an Irish aircraft leasing company, which was a 100% subsidiary of a Russian company expressly subject to EU sanctions, rebuts the presumption that the company was controlled by the Russian parent for the purpose of EU sanctions.

This enables the liquidators to deal with the assets without costly and time-consuming derogation applications.

Background

The Insolvency and Bankruptcy Code (Code) provides the right to a financial creditor to make an application to the National Company Law Tribunal (NCLT) for initiation of corporate insolvency resolution process (CIRP) against a corporate debtor in the event the debtor fails to repay its debt owed to the creditor. The Code as well as precedents developed by insolvency courts have consistently held that the test for admission of an insolvency application of a financial creditor is twofold, existence of a debt and default on that debt.

Introduction

Irish company law provides that if a charge granted by a company is not registered in the Companies Registration Office (CRO) within 21 days of its creation, it is void against a liquidator and any creditor of the company. There is a duty imposed on a company which grants a charge to register the charge in the CRO but the creditor taking the charge can also do so.

Diamond Rock Developments Ltd (the Company) granted a mortgage over a property. That mortgage was registered in the Land Registry but was not registered in the CRO.

If you supply goods, the simplest step that you can take to reduce your exposure to a customer’s insolvency is to use effective retention of title (RoT).

However not all RoT clauses are effective and we see many RoT claims rejected in insolvency.

By default, once you sell goods on credit:

• the goods belong to the customer; and
• the customer owes you the purchase price.

This means that if an insolvency practitioner (IP) is appointed to the customer:

Introduction

IBBIによる管財人の報酬体系規定

2016年破産倒産法の下、管財人または暫定管財人（総称してRP）は、企業債務者の事業を継続企業として運営し、企業倒産解決プロセス（CIRP）を実施する責任を負います。また、RPは、CIRP が期限内に実施され、企業債務者の資産価値が最大化されるように努める必要があります。

2016年破産倒産法の下では、企業債務者が債務の弁済ができない場合、倒産処理手続き（CIRP）が開始され、再建計画の募集により企業債務者の再生を試みます。その後、当該再生手続が失敗に終わった場合、企業債務者は清算されることになります。法は、CIRPにおいては「管財人」が企業債務者の再生と再構築に取り組み、これが失敗した場合に、清算人が企業債務者の支配者となり、企業債務者の資産を売却してその収益を分配し、解散を申請する、と定めています。清算人は、管財人は異なるいくつかの特別な権限を有しています。

R.K. Industries (Unit-II) LLP v. HR Commercials Pvt. Ltd.（R.K. Industries Case）において、最高裁判所は、企業債務者の資産の売却方法に関する清算人の商業的英断は、倒産裁判所の限定的な司法審査の対象となることを明確にしました。

Brief facts - 概要