Irish receiverships and liquidations market
The devaluation of goodwill and the deterioration of key relationships with employees, suppliers irish receiverships and liquidations market customers that can result from a protracted corporate insolvency process is avoided and creditors can achieve a higher return than might otherwise be the case. Prior to the formal appointment of the receiver, a purchaser is identified and terms of sale are agreed for the sale of the assets in question. The Irish Examiner publication is the latest business to be restructured using a so called pre-pack insolvency transaction. Insolvency practitioners must be able to demonstrate compliance with their statutory duty to obtain the best price reasonably obtainable at the time of the sale of the irish receiverships and liquidations market. For this reason, great care must be taken to ensure that appropriate valuations have been obtained for the assets.
It has been reported that at least one creditor has initiated proceedings to challenge the Irish Examiner transaction. Insolvency practitioners must be able to demonstrate compliance with their statutory duty to obtain the best price reasonably obtainable at the time of the sale of the asset. Irish receiverships and liquidations market the absence of any such guidelines in Ireland, the critical standard for the insolvency practitioner is to ensure that he obtains the best price reasonably obtainable for the assets at the time of sale, a duty imposed on him by the Companies Acts. The absence of formal reporting requirements for pre-packs means there are no statistics available on the use of the irish receiverships and liquidations market in Ireland, but there are reports of pre-packs having been effected in Ireland in recent times, particularly in relation to retail businesses.
Those guidelines were introduced to increase transparency for creditors and confidence in the marketplace regarding the use of pre-pack administrations. For this reason, great care must be taken to ensure that appropriate valuations have been obtained for the assets. This means that he will be required to follow a process of testing the investment options available before finalising his scheme of arrangement. In such cases a irish receiverships and liquidations market period of time will be required to market and sell the assets.
In such cases a lengthier period of time will irish receiverships and liquidations market required to market and sell the assets. This concern is more acute where the sale is to a party connected to the insolvent business such as the management, directors or shareholders. For this reason, great care must be taken to ensure that appropriate valuations have been obtained for the assets. Whilst examinership has been used for certain forms of transaction very similar to a pre-pack, an examiner has a duty to ensure that the investment irish receiverships and liquidations market recommends is in the best interests of the company and its members and creditors as a whole.
Pre-pack structures can allow a change in ownership of a business, a continuance of trade and the preservation of employment without the loss in value that can arise where a business is operated during an insolvency process while a purchaser is irish receiverships and liquidations market sought. Prior to the formal appointment of the receiver, a purchaser is identified and terms of sale are agreed for the sale of the assets in question. It has been reported that at least one creditor has initiated proceedings to challenge the Irish Examiner transaction.
If that case proceeds to trial, it will be one of the rare Irish cases in which the courts are asked to analyse the validity and basis of a pre-pack. This concern is more acute where the sale is to a party connected to the insolvent business such as the management, directors or shareholders. Prior to irish receiverships and liquidations market formal appointment of the receiver, a purchaser is identified and terms of sale are agreed for the sale of the assets in question. It has been reported that at least one creditor has initiated proceedings to challenge the Irish Examiner transaction.
Pre-packs are not suitable in all cases irish receiverships and liquidations market it will not always be possible for the insolvency practitioner to carry out any marketing of the assets, the subject of the sale, or to obtain comprehensive valuations for the assets in advance of irish receiverships and liquidations market sale. Such cases include those where creditors may be prejudiced due to a lack of time to market the assets in question. The absence of formal reporting requirements for pre-packs means there are no statistics available on the use of the process in Ireland, but there are reports of pre-packs having been effected in Ireland in recent times, particularly in relation to retail businesses.
Receivership pre-packs typically involve a bank or other secured lender appointing a receiver over the assets of a company experiencing irish receiverships and liquidations market difficulty. Whilst examinership has been used for certain forms of transaction very similar to a pre-pack, an examiner has a duty to ensure that the investment he recommends is in the best interests of the company and its members and creditors as a whole. In the absence of any such guidelines in Ireland, the critical standard for the insolvency practitioner is to ensure that he obtains the best price reasonably obtainable for the assets at the time of sale, a irish receiverships and liquidations market imposed on him by the Companies Acts.