The Supreme Court has recently confirmed that a debtor can be adjudicated a bankrupt in Ireland and be subject to the Irish bankruptcy regime notwithstanding that the debtor has already been adjudicated a bankrupt in another jurisdiction, in this case the US.

Background

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

The High Court has found two former directors of a car dealership in Dublin, Appleyard Motors Limited (In Liquidation) (Appleyard), personally liable to a former customer who paid for but did not receive three vehicles in the weeks leading up to the company’s liquidation. This case is particularly noteworthy as it is only the second time a director has been held personally liable for a company’s debts for reckless trading.

The trustees of the Olympic Airlines SA Pension and Life Assurance Scheme -v- Olympic Airlines SA

On 29 April 2015, the Supreme Court handed down its judgment in relation to the trustees’ appeal. The unanimous decision was in favour of Olympic Airlines SA (the respondent). The Supreme Court agreed with the Court of Appeal that the High Court was wrong and confirmed that in order for there to be an ‘establishment’ there must be some business dealings with third parties. The trustees’ appeal was therefore dismissed.

spring 2015 contentious business update hilldickinson.com Law in Action Page 6 Consumer Rights Bill - all change? Page 8 Mediation – when is it reasonable to refuse? Page 12 Serious Fraud Office (SFO) -vWest, Stone and Sustainable Agro Energy plc (SAE) Gary West, the chief commercial officer of SAE and Stuart Stone, director of SJ Stone Ltd, were convicted of offences under the Bribery Act 2010 in the context of an overall prosecution for fraud against officers of SAE.

NEW GOVERNMENT LEGISLATION PROGRAMME: INDUSTRY & SECTOR SPECIFIC BREAKDOWN 19 JANUARY 2015 The Irish Government has published its legislation programme for the Spring/Summer 2015 parliamentary session. There are 32 Bills which are currently before the Oireachtas. In addition, there are 137 proposed Bills set out in the Programme, 41 of which the Government intends publishing during the Spring/Summer Session.

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.

In January 2014, the Malta Financial Services Authority (“MFSA”) announced that Setanta Insurance Company Limited (“Setanta Insurance”) had ceased carrying on insurance business. As a result, no new business or renewals would be issued by the company, although existing policies would remain in force. 

Flanagan & Anor -v- Crosby & Ors [2014] IEHC59

In Re Home Payments Limited (In Liquidation) [2013] IEHC 507, an application for directions was made by the Joint Liquidators of Home Payments Limited for the liquidators’ remuneration, costs and expenses to be discharged from customer accounts.  Prior to its liquidation the company had operated as a nationwide household budgeting and bill paying company.