The High Court has recently held that a former employee of a construction company, which was in liquidation, had no reasonable cause of action against the company’s insurer. This was despite the fact that he had obtained judgment for negligence against the employer and the insurance policy covered the employer for such a claim in negligence.
1. Overview
Yesterday the Minister for Justice, Alan Shatter, and Director of the Insolvency Service of Ireland (“ISI”), Lorcan O’Connor, launched the ISI’s public information campaign, which includes guides to the three new personal insolvency arrangements, its website and an information helpline for queries.
Minister for Justice Alan Shatter recently unveiled further details about the new personal insolvency process, which forms part of the Personal Insolvency Act, 2012. An information campaign about the process has also begun.
Changes to Personal Insolvency Regime in Ireland
Recent attempts by Bank of Scotland plc to enforce its security over the company operating Foley’s Bar and O’Reilly’s Bar in Dublin city centre have been frustrated following various challenges in the High Court, culminating in the appointment of an examiner.
The Belohn Limited is the company which operates Foley’s Bar and the adjoining O’Reilly’s Bar. Its parent company is Merrow Limited. The two companies are reported to owe the bank in the region of €4 million and €1 million respectively.
Recent attempts by Bank of Scotland plc. to enforce its security over the company operating Foley’s Bar and O’Reilly’s Bar in Dublin city centre have been frustrated following various challenges in the High Court culminating in the appointment of an examiner.
Bank of Scotland plc. appointed a receiver to The Belohn Limited, the company operating the two bars, in October 2012. The Belohn Limited and its parent company, Merrow Limited, are reported to owe the bank in the region of €4 million and €1 million respectively.
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.
The Ward and Anderson families have been involved in the cinema business in Ireland for over sixty years. Several of the families’ principal cinema assets were operated through a jointly–owned company, Dublin Cinema Group Ltd (DCG). Following a number of disagreements over the years, including the bringing of a derivative action for alleged beach of fiduciary duty against one of the company directors, a petition to wind up the company was brought before the Commercial Court in January 2013.
A recent High Court decision has further demonstrated that failure to comply with the Code of Conduct of Mortgage Arrears (the “Code”) is likely to result in the court refusing to grant an order for possession.
Summary