Executive summary

A recent decision of the High Court sanctioned restructuring schemes for two companies in the Solar 21 renewable energy investment group showing once again effective and efficient restructuring tools available in Ireland for companies in need. Below we discuss the main features of the Judgment and the criteria required to be met in order for the schemes to be legally binding and effective pursuant to Part 9 of the Companies Act 2014 (as amended) (the Act).

What is a Part 9 Scheme of Arrangement?

On Friday, 29 July the Minister for Enterprise, Trade and Employment signed into law the European Union (Preventive Restructuring) Regulations 2022 (the Regulations).

Pursuant to the Companies (Miscellaneous Provisions) (COVID-19) Act 2020 (the COVID Act), “exceptional provision” to the operation of certain parts of the Companies Act 2014 (the Act) was made for a specific period of time, which period could be extended by order of the Government (the Interim Period). Yesterday, the government announced that it was extending the Interim Period until 31 December 2022.

Volatile commodity prices in 2020 led to the bankruptcy of many oil and gas producers. While some analysts expect oil and gas prices to rise during 2021, the US Energy Information Administration’s 2021 annual outlook advises that a return to 2019 levels of US energy consumption will take years.[2]