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Examinerships

Cormac leads our firm’s insolvency and corporate recovery team, bringing extensive experience in preparing independent expert reports and advising directors on the examination process. His expertise spans a wide range of sectors, including hotel and hospitality, engineering and construction, recruitment and healthcare, as well as retail and wholesale.

What is Examinership?

Examinership is a court-supervised process designed to assist companies in financial difficulty by restructuring their operations and avoiding liquidation. Established under the Companies Act 1990, it provides companies with protection from creditors while they work on a recovery plan.

Recent Changes to the Examinership Process

As of November 22, 2012, significant changes were announced to make Examinership more accessible for small and medium enterprises (SMEs). Companies meeting at least two of the following criteria can apply to the Circuit Court for protection instead of the High Court:
  • Balance sheet total not exceeding €4.4 million
  • Turnover not exceeding €8.8 million
  • Number of employees not exceeding 50

Criteria and Approval for a Successful Examinership

To qualify for Examinership, a company must demonstrate a reasonable prospect of survival if restructured, have investors ready to inject immediate capital, possess sufficient working capital to cover the Examinership period, and hold adequate assets to cover the costs associated with the process. The approval of Examinership involves two crucial steps: first, obtaining the agreement of creditors to a Scheme of Arrangement, which generally includes a reduction in debt, and second, securing the approval of this Scheme from the High Court.

Examinership Outline Plan

Initial Steps:

Independent Expert’s Report (IER)

This report, prepared within a week, assesses the company’s survival prospects and the protection of employment if the company enters Examinership. Full disclosure of relevant facts is essential.

Legal Preparation

Engage legal professionals to prepare and file a petition in the High Court. Filing freezes the company’s debts.

Court Hearing

The Court hears the petition, provides directions, and may appoint an interim Examiner.

Full Hearing

Held 7-10 days after filing, where the Court confirms the Examiner’s appointment. Directors retain executive powers during this period.

Examinership Process

During the examinership process, the initial focus is on continuing trading while managing relationships with suppliers and employees, communicating with creditors, and assessing conditions outlined in the Independent Expert’s Report (IER). Securing necessary funding and formulating a Scheme of Arrangement are crucial steps. The Scheme of Arrangement involves reconciling creditor balances, deciding on creditor classes and their treatment, and exploring various funding options such as trade surpluses, asset sales, new investments, or bank finance. For secured debt, it can be repaid in full or at a reduced level, with or without creditor consent, depending on the specific circumstances.

Time Periods

Scheme Preparation

Must be submitted to Court within 70 days. Extensions up to 100 days may be granted.

Creditor Meetings

Notice of meetings must be provided at least 3 days in advance. Creditors are grouped into classes, and at least one class must vote in favor.

Personal Guarantees:

During Examinership, creditors cannot pursue personal guarantees unless specific procedures are followed. The Examiner must notify creditors of meetings, and creditors have 48 hours to transfer their vote to individuals providing guarantees.

The Companies Act 2014

Under the Companies Act 2014, the examinership process involves oversight by an examiner who reports to either the High Court or Circuit Court. For small companies, if they meet two of the following criteria—balance sheet total not exceeding €4.4 million, turnover not exceeding €8.8 million, or fewer than 50 employees—the examinership may be managed by the Circuit Court. Additionally, examiners must be qualified to act as liquidators; acting without such qualification constitutes a category 2 offence.

Documents to be Submitted:

Document

Filing Requirements

Time for Delivery

Document

Filing Requirements

Time for Delivery

E24 Notice of Application for Appointment of Examiner
Within 3 days of petition presentation
Within 3 days of petition presentation
Court Order Notice of Appointment of Interim Examiner
Within 3 days of appointment
Within 3 days of appointment
Court Order Notice of Appointment of Examiner
Within 3 days of appointment
Within 3 days of appointment
Court Order Order to Cease Examinership or Approve Scheme
Forthwith
Forthwith
Document Filing Requirements Time for Delivery
E24 Notice of Application for Appointment of Examiner
Within 3 days of petition presentation
Within 3 days of petition presentation
Court Order Notice of Appointment of Interim Examiner
Within 3 days of appointment
Within 3 days of appointment
Court Order Notice of Appointment of Examiner
Within 3 days of appointment
Within 3 days of appointment
Court Order Order to Cease Examinership or Approve Scheme
Forthwith
Forthwith

Contact Us

For expert guidance through Examinership and tailored solutions to your company’s financial challenges, connect with us. Our firm is dedicated to helping you navigate this complex process with confidence and clarity.
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Testimonials

"Fitzwilliam Corporate guided us through a complex shareholder exit with expert valuations and smooth transition support. Their strategic plan review provided valuable insights, boosting our confidence for future growth."
Denise CullenCEO, Enterprise Solutions Limited
"Fitzwilliam Corporate has been invaluable in helping us with our challenges. Their strategic advice has been key to the growth of our business."
Robert MatthewsCEO, Pipiper
"We’ve worked with Fitzwilliam Corporate on multiple projects. They’re responsive, knowledgeable, and understand our business goals, providing real value in Audit, Tax, and Business Advisory."
Jim MooreTelclic
"Fitzwilliam Corporate, led by Cormac Mohan, has been a great partner. They bring both commercial focus and technical expertise, making them a great choice for growing businesses."
Ciaran LarkinKinvara Properties

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