Insolvency

Insolvency occurs when a business is unable to meet its financial obligations, meaning it can’t pay their debts when due. It can lead to severe financial difficulties, including legal actions from creditors, liquidation, or forced sale of assets.

Our expert insolvency services are designed to support Corporates facing financial distress. We offer tailored advice on restructuring, negotiating with creditors, and guiding you through formal insolvency procedures, including voluntary arrangements, examinership, SCARPs, or liquidation. Our goal is to provide practical solutions to mitigate financial losses and help you regain stability.

Whether you’re facing temporary cash flow issues or long-term financial struggles, we’re here to offer professional, confidential advice to help you navigate through these challenging times.

Court Liquidations

This is where a number of key stakeholders, such as directors, shareholders or creditors, petition the High Court to appoint a Liquidator to wind up the company. Similar to a Creditors Voluntary Liquidation, the Liquidator must realise assets, investigate the company’s affairs, submit a report to the Director of Corporate Enforcement and carry out an orderly wind down of operations. In a Court Liquidation, the Liquidator must also report to the Court.

Creditors Voluntary Liquidation

This is where an insolvent company’s shareholders and directors call a meeting of creditors to propose the appointment of a liquidator. The role of the Liquidator is to realise assets, investigate the company’s affairs, submit a report to the Director of Corporate Enforcement and carry out an orderly wind down of operations.

Receivership

This process may be used by banks and other lenders when a company fails to repay a loan. The lender (or Court acting on behalf of a creditor) appoints a Receiver whose role is to realise the lender’s security in order to repay the underlining loans.

SCARP

Ireland’s Small Company Administrative Rescue Process (SCARP) is designed to provide an affordable restructuring tool for small and micro businesses facing insolvency. SCARP broadly follows the framework of Examinership but without Court involvement.

Examinership

Examinership gives a financially distressed company time to reach a compromise with creditors. It can be proposed by a company based in Ireland, with the Examiner appointed by a Court. The Examiner assesses if a viable rescue plan (Scheme of Arrangement) is possible and reports to the Court. If no agreement is reached, the Court may extend the Examiner’s time or order the company to be wound up.