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 recent decision of the Supreme Court in the case of In the matter of Sean Dunne (a bankrupt) has confirmed that it is possible for a debtor to be adjudicated a bankrupt under the laws of Ireland notwithstanding the fact that the debtor has already been adjudicated a bankrupt in another jurisdiction which is not subject to the European Insolvency Regulation.
Summary
The High Court has confirmed that it does not have a role in examining the reasonableness of a creditor’s vote on a personal insolvency arrangement when considering if a bankruptcy petition should be adjourned.
In a number of recent cases, debtors:
Introduction
The recent decision of the High Court in the case of In the matter of Ladbroke (Ireland) Limited and Others has, in the first written judgment in relation to the matter, reaffirmed the principles established in the eircom examinership regarding an examiner’s engagement with potential investors. The decision upholds the primacy of the examiner’s commercial judgment, which is subject to review by the court only to the extent that it is so “utterly unreasonable and absurd that no reasonable man would have done it”.
On 13 August 2014, the Irish High Court gave a judgment which addresses significant issues in examinerships and provides some clarity regarding loan acquisitions and the timing and other considerations for creditors when issuing letters of demand.
Background
In a number of recent cases, borrowers have produced a detailed forensic analysis of the accrual of interest on their accounts by lenders alleging that any error in the calculation of interest invalidates the demand made by the lender and any appointment of a receiver on foot thereof.
Judgment by Cregan J of 6 October 2014
Overview
This case concerned an application by the official liquidator of RQB Limited (in liquidation) (the Company) pursuant to S280 of Companies Act 1963 to determine the legal status of a floating charge dated 10 September 2008 which entered into by the Company in favour of Danske Bank (the Bank) and which the liquidator believes to be unenforceable.
Background
The "2005 Facility"
The High Court has confirmed that leave of the Court is required before an application can be brought to cross-examine an Official Assignee (In re Sean Dunne, A Bankrupt [2014] IEHC 113).
Background
In the matter of Shellware Limited (In Liquidation) 2014 IEHC 184
On 1 April 2014 Barrett J. refused an application by the Liquidator of Shellware Limited (In Liquidation) for the restriction of Mr Eoghan Breslin, a former director, under Section 150 of the Companies Act 1990. This decision also helpfully provides clarity regarding applications for an extension of time for the filing of a Report by a Liquidator to the Director of Corporation Enforcement under Section 56 of Company Law Enforcement Act 2001 (“Section 56 Report”).