Ireland

The Government is set to proceed with reforms to the State’s personal insolvency regime to allow full access to court protections for those struggling debtors hit by the Covid-19 pandemic, The Irish Times reported. Currently someone applying for a personal insolvency arrangement can seek a court review if their mortgage lender refuses what they believe to be a reasonable insolvency proposal. However, in order to seek this review their mortgage arrears must date from before January 1st, 2015.

The High Court has made orders formally winding up the operator of a south Dublin care facility, which caters for vulnerable adults, and a nursing home, The Irish Times reported. Mr Justice Michael Quinn made the order in respect of St Mary’s Centre (Telford), after being informed that no appeal is being brought against his decision not to appoint an examiner to the company. The company had operated both disability care facility for persons who are legally blind and a nursing home on a campus beside St Vincent’s Hospital on Merrion Road in Dublin.

The scale of the economic shock caused by the Covid-19 pandemic will lead to as much as €11.7 billion of revenue shortfalls across Irish small- and medium-sized businesses (SMEs), which many will not be able to survive, according to a new Central Bank report, The Irish Times reported. The bank estimates that the gap between companies’ sales and running costs will range between €10.3 billion and €11.7 billion, led by firms in the food and accommodation sector, even after companies have been helped by Government wage subsidy schemes and widespread cost-cutting.

Businesses have been granted more time to pay outstanding tax bills to Revenue at a discounted rate of interest, The Irish Times reported. The decision comes as a spokeswoman for the tax office said there had been strong demand for the incentivised repayment programme, with €46 million of outstanding business taxes now covered by it. A measure in the July stimulus package allowed companies to warehouse Covid tax debt, deferring payment until their businesses reopened and then availing of reduced interest rates.

Fashion retailer New Look’s application for examinership in Ireland is “not about saving jobs” but an attempt to rewrite its contracts with landlords, it has been claimed, The Irish Times reported. A lawyer for some of the landlords told the High Court the company was in “more robust health than most”, despite the Covid-19 pandemic, and was seeking to make changes that could save it around €5 million per year in rent reductions.

The High Court has granted permission to the Irish arm of fashion retailer New Look to pay a tax bill of nearly €2.7 million, as the company puts together a survival plan amid financial losses due to the Covid-19 pandemic, The Irish Times reported. Mr Justice Denis McDonald made the order after New Look said its tax affairs needed to be up to date before it could avail of the Employment Wage Subsidy Scheme (EWSS) for workers. Monday’s hearing was in advance of an application by the company, for hearing on Tuesday, to have an examiner appointed.

Banks will need to show borrowers and businesses hit by the coronavirus pandemic further leeway, the Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar has said, The Irish Times reported. A payment break for mortgages and business loans for those financially affected by the virus is due to expire at the end of September. Mr Varadkar said on Wednesday that the Government would continue to discuss further forbearance for loans with the country’s main banks.

Pub lobbyists should find out today if their campaign to win Government agreement for a reopening of so-called wet pubs has been successful, The Irish Times reported. Representatives of the wider hospitality sector, meanwhile, have a fine line to walk in the run-up to the upcoming budget between calling for State help and managing the message that many businesses may go bust in the depths of winter. There is widespread belief in the hospitality trade that early January will herald a wave of insolvencies in the sector.

Consumers have begun to save less and spend more as lockdown measures introduced to curb the spread of the Covid-19 pandemic continue to ease, according to data from Bank of Ireland, The Irish Times reported. The bank’s Savings and Investment Index, which was published on Monday, demonstrates the changing attitudes of Irish consumers as the economy begins to re-open. Compared to the period of full blown lockdown when savings increased significantly, less people are now saving by default.

Personal insolvency applications reached a record high in July, according to figures from business and credit risk analyst CRIF Vision-net, The Irish Times reported. The Insolvency Service of Ireland (ISI) received 239 applications for personal insolvency arrangements, debt relief notices and debt settlement arrangements. This is a 125 per cent increase on the 106 applications made in July last year. The number of applications to the ISI have been higher in almost all months this year in comparison to 2019, CRIF Vision-net said, but July has seen the largest spike to date.