Insolvency specialists want company law changed to streamline examinerships and allow virtual creditors’ meetings.
Des Gibney, chairman of the Irish Society of Insolvency Practitioners, has written to Heather Humphreys, Minister for Business, Enterprise and Innovation, seeking changes to company law to aid troubled firms through the Covid-19 crisis.
Examinership allows companies in difficulty seek court protection from creditors for up to 100 days to come up with a rescue plan to help them stay in business and preserve jobs.
The society wants the courts to be allowed to extend the time where needed and to relax requirements to show that companies have enough cash for the examinership period.
Mr Gibney’s letter also recommends that creditors of companies in examinership be allowed to meet through conference calls or remote video.
Liquidation
The society wants a similar change to the law for creditors’ meetings held to put companies into liquidation.
However, Mr Gibney suggests that the company’s statement of affairs, which details its assets and liabilities, be distributed to creditors along with the statutory notice of the meeting.
The group wants changes to the personal insolvency regime, including removing the €3 million cap on secured debt, which it says is preventing some candidates from availing of the system.
