In the second of a three-part series of articles, Dessie Morrow, Director in Corporate Advisory shares his insights on the benefits of examinership, exiting the process and why Baker Tilly are unrivalled in leading cases.
What are the benefits for the company going into an examinership?
There are many benefits.
Too often, we see company directors, through no fault of their own, trying to put in place deals with creditors which simply aren’t sustainable.
Some have been, for too long, trying to do everything themselves which is just not possible. Usually those creditors who shout loudest are paid first but invariably, one or more creditors will go unpaid.
The benefit of an examinership in such cases, is that Court protection is secured which allows all creditors be dealt with in accordance with the classification of their claims, whether bank, revenue, leasing, unsecured.
It also provides certainty to put a plan in place, secure investment and prepare a scheme of arrangement to deal with the claims of all creditors.
How likely is it that a company will successfully exit an examinership?
Where applicant companies for examinership have a business with a good level of trade, employees and a potential investor, the prospects of success are over 90%.
Even in cases where an investor is not immediately obvious, we have managed to secure an investor to save the business.
Why should a company go to Baker Tilly if they are considering engaging in the examinership process?
We have a highly experienced team and have accounted for over 50% of all examinership cases for the past ten years, making us the market leader in the sector. Within the team are four individuals who have acted as Examiner in their own right, in contentious cases.
This is unrivalled in any other firm and means the people you meet know exactly what is required to save a company.
The issues faced are not delegated to a junior member of staff.
Instead, business owners’ queries are dealt with by people who have first-hand knowledge of what is required, what difficulties may appear on the horizon and how to manage the process so that its integrity remains intact at all times.
The key skillset of the team is saving companies which would otherwise fail. In line with the mission statement of the firm, we want to be trusted business advisors to entrepreneurial, owner managed, family owned businesses.
Get in touch.
If you have any questions regarding the examinership process, contact Dessie Morrow on (01) 6699999.