The Central Bank has announced a pilot scheme for the restructuring of secured and unsecured distressed consumer debt across multiple lenders. The scheme aims to prevent borrowers entering the insolvency process by agreeing debt solutions with various lenders.

The scheme will not apply to business debt, debt involving buy-to-let properties or debts where the borrower is deemed to be “non-co-operating” under the Code of Conduct on Mortgage Arrears.

The High Court has approved a Scheme of Arrangement in respect of Monsoon Accessorize Ireland Limited which entered into the examinership process in March 2013 and was under the Court’s protection for the maximum period of 100 days. This period afforded the company time to attract investment and allow for its restructuring so that it could continue to survive as a going concern after the protection of the Court was lifted.

As a result of the restructuring, a number of stores will close, however, the Scheme of Arrangement should result in approximately 200 jobs being saved.

Waterside Management Company Limited v Brendan Kelly and Asta Kelly^[1]

The Land and Conveyancing Law Reform Act 2013 (“the Act”) has been enacted. The Act addresses the unintended consequences arising from the Land and Conveyancing Law Reform Act 2009 (“the 2009 Act”).

Summary

In In re Kerr Aluminium Ltd (In Voluntary Liquidation) [2012] IEHC 386, the High Court dismissed an application by a liquidator that certain payments made by the company in favour of Bank of Ireland be deemed a fraudulent preference within the meaning of section 286 of the Companies Act 1963. The decision is a further reminder of the challenges liquidators face in establishing a dominant intention to prefer one creditor over another in fraudulent preference applications.

Since July 2011, lenders have lived with great uncertainty as to their statutory rights, particularly their right to obtain possession of a secured property by way of summary proceedings. This uncertainty arose as a result of the 2011 High Court decision in Start Mortgages Limited & Ors v Gunn and Ors[1] (the “Start Mortgages Case”).

The Irish Examiner publication is the latest business to be restructured using a so called pre-pack insolvency transaction. “Pre-pack” transactions have been a feature of insolvency sales in other countries such as England and Wales for some years, but until relatively recently had not commonly featured in Irish insolvencies.  It has been reported that at least one creditor has initiated proceedings to challenge the Irish Examiner transaction.

The Personal Insolvency Act 2012 was signed into law on 26 December 2012. The Act provides for the introduction of three new non-judicial debt settlement arrangements and reforms to the current bankruptcy legislation.

The high profile liquidation of Custom House Capital Limited (In Liquidation) continued in 2012. Following a successful exercise to reconcile and confirm the position regarding certain client assets, the liquidator of the company proposed applying a fee of 0.5% when transferring the assets to clients to cover the costs of the reconciliation exercise.

Amantiss Enterprises Limited and Wilbury Limited were placed into creditors’ voluntary liquidation in 1994. Following the appointment of a liquidator, proceedings were issued by the two companies, together with a third company, Framus Limited, against a multitude of defendants including CRH plc, Readymix plc and Kilsaran Concrete Products Limited, alleging breaches of competition law.