Insolvency Practitioners,
Registered Auditors & Accountants,
Tax Consultants.

Tel: 091 565 953 Email: info@cobtax.com

An Examinership is a formal process to restructure an insolvent company while under the protection of the High Court. The Examiner will review the company's affairs and formulate a Scheme of Arrangement for presentation to a meeting of the Creditors and Shareholders.

Is your company suitable for Examinership?

An Independent Accountants Report will provide company background, trading details and reasons for the company's financial difficulties.

In order for a company to be suitable for Examinership the following criteria will be considered:

• Does the company have a reasonable prospect of survival?
• Are sufficient assets in place to cover the costs associated with an Examinership?
• Can the company obtain new equity investment?
• Can the company secure new borrowings?
• Can a Scheme of Arrangement be formulated for approval by the company's creditors and members?
• The circumstances giving rise to the insolvency

Situations where an Examinership is not suitable:

• The company has no cash flow
• The company has ceased trading
• There is little possibility of attracting or obtaining new investors
• The company does not have the support from its major creditors
• The company does not have the support from its bankers

The Scheme of Arrangement:

The Proposal presented to the creditors should include a Statement of Affairs of the company and include the estimated outcome following a winding up for each class of creditor.

The Creditors of the company must agree to accept the Scheme of Arrangement which usually offers a compromise of their debt in a percentage. The High Court must then approve the scheme accepted by the creditors.

How O'Boyle & Associates can help?

We can act as the Examiner, provide advice on a company's suitability for Examinership or alternatively we can prepare the Independent Accountants Report.

For further information on Examinership or any aspect of Insolvency, please do not hesitate to contact us.