Examinership: ‘Those who are transparent – they’re the ones who are more likely to come out the far side’

Examinership: ‘Those who are transparent – they’re the ones who are more likely to come out the far side’

By |2019-11-19T10:49:44+00:00November 19th, 2019|Latest News, News|

As the threat of a global recession looms, we are seeing an increase in the number of insolvencies this year.

Business and credit risk analyst CRIF Vision-net recently released data that shows there has been an insolvency increase of almost 10% compared to this time last year.

This figure includes the number of businesses that filed for examinership, liquidation or receivership in the year to date.

Numbers opting for examinership

1,519 insolvencies were recorded by the firm out of which 25 chose to go through the examinership process. This was 13 fewer than the same period last year.

So why are less companies availing of examinership? Neil Hughes, our Managing Partner, said it’s due to a lack of knowledge of the process.

Drawing on the examinership process in the US, he said that between 20% and 22% of insolvent companies will go into Chapter 11 (similar to examinership). Between 2% and 3% of struggling Irish firms will enter the Irish process.

“We are similar to the US marketplace economy, with a similar pro-business and entrepreneurial mind set. There is a heavy American influence in Ireland anyway, because of all the multinationals. So, you would think that the figures would be similar but they’re not,” he said.

“There is a lack of willingness to actually stand up if you get into trouble, put your hand up and admit the fact: ‘we have a real problem here and are in difficulty.'”

He said that it’s important that firms are transparent with their creditors:

“The people who actually are honest about their position and communicate better with their creditors about the difficulties are in. They are the ones who are more likely to come out the far side and succeed.”


Baker Tilly has a success rate of over 90% of all the cases undertaken.

Take Celbridge Playzone for instance. The fallout from the recession led to the company entering examinership in 2014, eventually exiting.

Speaking to The Sunday Times, Pat Kelly, founder of Celbridge Playzone said:

“All you are doing is firefighting – you’re not really concentrating on the business and enabling it to grow.

“We went into the process in March 2014, came out in July 2014, and never looked back.”

During the examinership process, Kelly came to an arrangement with his creditors who took a portion of their outstanding debts, and he renegotiated his rent. “All of our creditors stood by us and because we’re doing well now, they doing well too.”

Neil Hughes said that we are likely to see more insolvencies in 2020: “It’s possible that the 10% will intensify further.”

If your company is struggling or you have any questions regarding the examinership process, contact Neil Hughes or Dessie Morrow, Corporate Recovery, on (01) 6699999.

You can find out more about Neil Hughes, Managing Partner, by visiting his LinkedIn profile.

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