The background to this case stems from a High Court judgment in 2022, where exemplary damages were awarded against a receiver in the sum of €550,000. The damages were awarded after a receiver had taken possession of and sold certain properties without first obtaining a court order under the Land and Conveyancing Law Reform Act 2009 (the “2009 Act”).
A company that is insolvent or facing insolvency can seek protection from its creditors in the Circuit Court or High Court, depending on the size of the company. During the protection period, creditors cannot seek to recover debts owed to them by the company or assets held by the company. This protection also extends to guarantors of a company’s liabilities, who cannot be pursued under their guarantees for so long as the company is under court protection.
The impact of COVID-19 and the ongoing response to same has seen businesses in Ireland face unprecedented levels of disruption and uncertainty. Whilst companies are faced with unique challenges as the scale of the pandemic and its response continues to evolve, directors remain subject to their duties and responsibilities under the Companies Act 2014 (the ‘Act’) and other statutory obligations including in respect of employment and health and safety. It is essential that directors when responding to these challenges are cognisant of their duties and responsibilities.
In a recent case involving a company that owned and operated a nursing home (Melbourne Health Care Limited), the Examiner was unable to formulate proposals for a Scheme of Arrangement within the 100 days allowed to do so. At a late stage of the process it became apparent that the preferred investor could not satisfy its lender’s conditions precedent to draw down the financed element of the investment within the period of protection. As a result, the examiner applied to the High Court for directions.
A company that is insolvent or facing insolvency can seek protection from its creditors in the Circuit Court or High Court, depending on the size of the company. During the protection period, creditors cannot seek to recover debts owed to them by the company or assets held by the company. This protection also extends to guarantors of a company’s liabilities, who cannot be pursued under their guarantees for so long as the company is under court protection.
The Land and Conveyancing Law Reform (Amendment) Act 2019 (the “Act”) introduces a list of factors that must be taken into consideration by the Court before an order for possession can be granted or refused. The Act builds upon the protections given to borrowers under the Personal Insolvency legislation, which allows the Court to adjourn proceedings to facilitate a borrower getting a proposal together for a Personal Insolvency Arrangement (“PIA”).
Introduction
Introduction
The Companies (Accounting) Act 2017 (the ‘Act’) provides welcome clarity on the position of crystallised floating charge holders in relation to their priority over preferential creditors.
A creditor who has a monetary judgment against a debtor (“the judgment debtor”) can obtain an order from the Court directing that an identified third-party (“the garnishee”) who owes money to the judgment debtor instead pay the money it owes to the judgment creditor, in full/ partial discharge of the judgment debt.