The Government has announced the fast tracking of new legislation to allow businesses, particularly SMEs, a less costly route to Examinership by applying through the Circuit Court as opposed to a more expensive High Court application.
George Maloney, Partner Recovery and Restructuring at Baker Tilly Ryan Glennon, has welcomed the announcement. “I warmly welcome the announcement that this legislation is to be fast tracked. It had originally been included as part of the new Companies Bill, however this will not come into effect until late 2014 at the earliest, and given the importance of small and medium sized companies to the recovery of the economy as a whole bringing this change forward is a very positive development. A large number of otherwise viable businesses have legacy issues linked to the boom era such as unsustainable debts or uneconomic rents. Making the restructuring tool of Examinership more accessible to them may be the difference between survival or liquidation. Having said that I see this as a first step as the change merely allows access to the less costly Court – further changes to the underlying legislation to streamline the process are also overdue” said George.
“In addition to the new personal insolvency legislation that came into effect in September, this creates new options for the restructuring of struggling businesses in the SME sector. In relation to the personal insolvency processes there has been much focus on struggling homeowners and property investors - but it has often been overlooked that the new debt resolution processes could also offer solutions to business owners. Many sole traders or unincorporated businesses that don’t have corporate debt solutions such as Examinership available to them, may look to the new personal insolvency processes to address legacy property debts that are impacting negatively on their otherwise profitable trades” concluded George.
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George Maloney, Partner
Baker Tilly Ryan Glennon
Trinity House, Charleston Road, Ranelagh, Dublin 6
T: 01 4965388
F: 01 4969226
About George Maloney: George has extensive experience gained over the past 30 years in Corporate Consulting, Investigations and Insolvency. He is a specialist in Corporate Recovery and Restructuring and has acted on a number of high profile assignments in both the private and public sector. He has served as a Member of the Global Council with the Association of Chartered Certified Accountants, is a Past President of ACCA Ireland and currently represents ACCA on CCAB-I and on the CCAB-I/NAMA liaison group. George is on the Board of a number of companies located within the IFSC.
About Baker Tilly Ryan Glennon: A leading firm of accountants, tax and business advisors in Ireland. The firm is an independent member of Baker Tilly International, the 8th largest network in the world by fee income and is represented by 156 firms in 131 countries.