Examinership definitions
| Word backwards | pihsrenimaxe |
|---|---|
| Part of speech | The word "examinership" is a noun. |
| Syllabic division | ex-am-in-er-ship |
| Plural | The plural form of the word "examinership" is "examinerships." |
| Total letters | 12 |
| Vogais (3) | e,a,i |
| Consonants (7) | x,m,n,r,s,h,p |
Examinership is a legal process available in Ireland that allows insolvent companies to restructure and potentially survive. It is a court-supervised mechanism that aims to protect the interests of the company, its creditors, and employees. This process provides the company with breathing space from creditor action and allows for the development of a scheme of arrangement to deal with its debts and continue trading.
Key Features of Examinership
Examinership is typically initiated by the company itself, its directors, or a creditor. The process involves the appointment of an examiner, usually a qualified accountant or solicitor, who takes control of the company's affairs and works to develop a feasible plan for rescue. The examiner has a limited period, usually 70 days, to formulate and present this plan to the court for approval.
Advantages of Examinership
One of the main advantages of examinership is the protection it offers the company from creditor enforcement actions during the process. This gives the company the opportunity to negotiate with creditors and restructure its debts in a more orderly and controlled manner. Additionally, if the court approves the examiner's plan, the company can emerge from examinership with a stronger financial position and a viable future.
Challenges of Examinership
Examinership is not a guarantee of success, and there are challenges associated with the process. Developing a viable scheme of arrangement can be complex and requires the cooperation of various stakeholders. Furthermore, if the examiner's plan is not approved by the court, the company may be placed into liquidation, resulting in the loss of jobs and the winding up of the business.
Conclusion
Examinership is a valuable tool for companies facing financial difficulties in Ireland. It provides a structured framework for debt restructuring and business rescue, offering a chance for companies to avoid insolvency and continue operating. While there are challenges associated with the process, the potential benefits make it a useful option for companies in distress.
Examinership Examples
- The company went into examinership to restructure its debts.
- The court appointed an examiner to assess the company's financial situation.
- The bank agreed to a period of examinership to allow the business to recover.
- The shareholders supported the decision to enter into examinership to avoid liquidation.
- The examinership process provided the company with a chance to present a recovery plan.
- The appointment of an examiner helped the company negotiate with creditors.
- The business successfully exited examinership after meeting the requirements of the court.
- Entering into examinership can be a difficult but necessary step for struggling companies.
- The examinership procedure aims to protect the interests of all stakeholders involved.
- The company's creditors agreed to a compromise during the examinership process.