Donaghy’s represented a Co Kildare based children’s children’s facility Celbridge Playzone Limited which became the first company in Irish history to exit examinership through the circuit court system in July of this year.
Thanks to the scheme of arrangement proposed by the company’s examiner, Joe Walsh of Hughes Blake, all 33 jobs at the facility were saved and the company has been placed on a sound financial footing for the future.
Until now, all examinerships took place in the High Court – something which involves travel to Dublin for a business owner/director based outside Dublin, as well as higher costs.
The Circuit Court system is more accessible to many SMEs, especially businesses based outside the capital. The overall process is less complex and therefore can be entered into at a lower cost.
The application was made under the legislation in the 1990 Act which provides that the High Court may remit a petition to appoint an examiner to the Circuit Court in circumstances where the company has liabilities of less than €317,434.52. Needless to say the reduction in costs for the applicant, together with the matter being dealt with closer to its place of business, makes this process more attractive to SMEs throughout the country.
The Hughes Blake Examinership Index shows that a total of 1,204 were saved in the first half of this year via examinerships, 331 of those in SMEs.
For further information please contact John Bollard on 01-6794165 or email: firstname.lastname@example.org