Restructuring & Insolvency
If you are concerned about the viability of your business you should seek specialist advice at an early stage. We offer a free consultation to directors of companies who are experiencing difficulties. You may just need to review your cost base and make some difficult decisions.
We can conduct a review of your business and advise you of the options we feel are open to the company.
We also advise in relation to negotiations you may be having with financial institutions, the Revenue Commissioners and other creditors and how best to approach these negotiations.
James Kelliher heads up our insolvency department. He would be happy to sit down and discuss with you any queries you may have in respect of:
- Schemes of Arrangement
- Receivership (Both corporate and personal)
- Creditors Voluntary Liquidation
- Members Voluntary Liquidation
In December 2012, the Personal Insolvency Act 2012 was signed into law. The Act introduces three new debt resolution mechanisms to help mortgage-holders and other individuals with unsustainable debt to reach agreements with their creditors. These new options are expected to be introduced in the second half of 2013.
The new options are as follows:
- Debt Relief Notice (DRN) – Will provide debt relief for individuals who have virtually no disposable income or assets and no prospect of being able to pay off the debt in the next 3 years. If a DRN is issued for you, it will allow for the write-off of your qualifying debt up to €20,000, subject to a 3-year supervision period.
- Debt Settlement Arrangement (DSA) – Will provide for the agreed settlement of unsecured debt with one or more creditors over a period of 5 years, with a possible agreed extension to 6 years. You may apply for a DSA if the level of your income, assets and debts would make you ineligible for a Debt Relief Notice. You must be able to make some repayments to your creditors in return for a discount of your debts. The DSA will be a voluntary arrangement and it will have to get the support of creditors representing at least 65% of your total debt.
- Personal Insolvency Arrangement (PIA) – Will provide for the agreed settlement of secured debt up to a limit of €3 million (although this cap may be increased with the consent of all secured creditors) and an unlimited amount of unsecured debt. A PIA will run over a period of 6 years, with a possible agreed extension to 7 years. It will be a voluntary arrangement and will have to get the support of creditors – secured and unsecured – representing at least 65% of your total debt. In addition, over 50% of your secured creditors and 50% of unsecured creditors must vote in favour.
When the relevant sections of the Act are in effect, individuals may be able to use one of the new options, depending on their circumstances. The new mechanisms will offer different solutions to individuals in different situations.