Corporate Insolvency in Ireland: The Options

It takes courage to build a company from scratch; it involves a lot of hard work, drive and risk, but sometimes things don’t go the way you hoped.

However, there are many different avenues available to help manage your debt as a corporate entity. Depending on the severity of your company’s debt, you may find you have a choice in how you deal with it.

Company Insolvency in Ireland

Bankruptcy is not the only solution when faced with large amounts of corporate debt. There are different options available to help manage your company’s debt in a way that can appease your creditors as well as your business goals.

Have a watch of our video explaining what options could be available to you and your company.

Receivership:

  • Normally instigated by a creditor, receivership enforces a loan agreement contract on the original loan between the creditor and company.
  • The creditor appoints a receiver to collect funds on behalf of them.
  • A company may continue to trade under receivership.
  • However, this is usually seen as a last resort.

Examinership:

  • This option is used when a company is in financial trouble, but has a possibility of returning to profitability.
  • If it’s determined that a company can be salvaged, the high court appoints an examiner to devise a strategy to keep the company in business.
  • Whilst the examiner is in place, the company is under protection from liquidation.

Liquidation in Ireland 

Voluntary Liquidation: 

  • If the majority of directors of a company want to dissolve a company and split the assets between them, they can apply for voluntary liquidation. This is also known as a member’s voluntary liquidation.
  • If they find they are unable to pay their debts, it can opt for a creditors voluntary liquidation.
  • The creditors can accept or reject this liquidator.

Involuntary Liquidation:

  • A company would come before the high court to be officially wound up.
  • The court appoints a liquidator whose sole job is to help the creditors receive their money.

Informal proposals in Ireland

  • With an informal proposal, a company is able to keep control of any debts whilst avoiding the cost of court proceedings.
  • The debtor seeks to obtain an agreement from all creditors to the proposed proposal.
  • An informal proposal is voluntary to all involved.

For more information on how Gibson & Associates can help with corporate insolvency, get in touch with one of our expert solicitors today on 1890 989 289, or contact us via email.

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