For those in the dark:
Examinership is Irelands corporate rescue process which gives an insolvent Company (or group of Companies) protection from its creditors for a period of up to 100 days. The protection afforded under examinership legislation is to facilitate a Company (through a Court appointed Examiner) secure investment and put a legally binding scheme of arrangement in place for the settlement of debts with its creditors.
Once a Company has been placed in examinership by the Court, this prevents any enforcement through either the appointment of a liquidator or a non- statutory receiver. A Company can utilise the examinership legislation to overturn the appointment of a Receiver but there is a very narrow window of time to do so.
When a Company successfully exits the examinership process, the Company continues trading with the business and assets intact, jobs saved but without the majority (or in some cases any) of the liabilities accumulated prior to entering the examinership.
The opportunity which examinership affords for Companies to restructure is invaluable. Getting early advice prior to and guidance throughout the process is critical to a successful outcome.
Effectively means the creditors (shareholders) have to agree to wipe out the debts. As always the devil is in the detail "INSOLVENT COMPANY" I guess this is what Schram was referring to when he said "protect the stakeholders and investors!"
Examinership Process
Obtaining a practical understanding and clear direction on each of the three distinct stages of the process; entry, during and exit is paramount to a successful outcome;
Entry
• Company must be insolvent
• Company must be suitable for the process meaning that it should have a reasonably prospect of survival, sufficient cash flow for the 100 day protection period and ideally have the support of stakeholders To allow a Company successfully exit examinership, the investment pledged must be received by the Company. Sufficient investment monies will be required to facilitate the payment of
the dividends outlined in the scheme of arrangement, any immediate working capital required and the examinership costs.
Still requires a substantial investment to exit the process