The scheme of arrangement (Rescue Plan) prepared by the examiner of Mac Interiors Limited (Company) has not been approved by the High Court following strong objections from the Revenue Commissioners (Revenue).
In its challenge, Revenue argued that there had been an error in “class composition” or, in other words, an error in the classification of creditors that voted on the Rescue Plan.
Class Composition
With effect from 9 May 2022, a new Order 74C of the Rules of the Superior Courts came into operation. Order 74C facilitates the operation of the Companies (Rescue Process for Small and Micro Companies) Act 2021, which inserted a new Part 10A into the Companies Act 2014 (Part 10A).
The Companies (Rescue Process for Small and Micro Companies) Bill 2021 (Bill) detailing the government's proposed rescue process for small and micro companies (SCARP) has successfully passed through the Oireachtas and is expected to be signed into law shortly by the President. The legislation will be commenced at a future date by the Minister.
The Department of Enterprise, Trade and Employment has published the outline of proposed legislation for a dedicated rescue and restructuring framework for insolvent or potentially insolvent small and micro companies – see here.
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. |
On 20 May 2015 the European Parliament adopted a recast of the European Insolvency Regulation. The Recast Regulation is in line with the EU’s current political priorities of promoting economic recovery and boosting growth and employment. The key objectives of the Recast Regulation are to move away from the traditional liquidation approach towards more of a “second chance approach” for businesses and entrepreneurs in financial difficulties, and to enhance cooperation and coordination in cross-border insolvency proceedings.
Scope
In Re Citywest Hire Ltd (In Liquidation)
Myles Kirby was appointed as Official Liquidator of Citywest Hire Limited (In Liquidation) (“Citywest”). Citywest had operated Il Segreto Restaurant on Merrion Row, Dublin 2 until late June 2013.
The High Court has confirmed that leave of the Court is required before an application can be brought to cross-examine an Official Assignee (In re Sean Dunne, A Bankrupt [2014] IEHC 113).
Background
In the matter of Shellware Limited (In Liquidation) 2014 IEHC 184
On 1 April 2014 Barrett J. refused an application by the Liquidator of Shellware Limited (In Liquidation) for the restriction of Mr Eoghan Breslin, a former director, under Section 150 of the Companies Act 1990. This decision also helpfully provides clarity regarding applications for an extension of time for the filing of a Report by a Liquidator to the Director of Corporation Enforcement under Section 56 of Company Law Enforcement Act 2001 (“Section 56 Report”).
Congil Construction Limited & Companies Acts: Mannion -v- Connolly & Anor [2013] IEHC 544
On the 28 November 2013 the High Court restricted two directors of an insolvent construction company, Congil Construction Limited, for a period of five years.