Examinership Saves Almost 600 Jobs

21 Jan 2021 | 07.29 am

Examinership Saves Almost 600 Jobs

Baker Tilly expects more action in 2021

21 Jan 2021 | 07.29 am

Nearly 600 jobs were saved last year as a result of the examinership corporate recovery mechanism, according to Baker Tilly.

Examinership procedures help viable businesses in restructuring if insolvent, and last year’s jobs saved came in the retail sector (270 jobs saved), aviation (140), and wholesale and distribution (108). 

Among the nine businesses that exited examinership last year were airline CityJet, Galway-based DPD operator Supreme Deliveries and food distribution group Dublin Food Sales.

The Dublin Food Sales restructure enabled the company to continue to trade as a going concern and write off  €10m of debt, when the only other option was liquidation. Under the scheme, various creditor classes will receive dividends ranging between 100% and 3%. 

According to Baker Tilly, the restructuring plans put in place for Supreme Deliveries, together with an upturn in online shopping, resulted in an additional 14 staff being taken on during the 100 days of court protection.

Managing partner Neil Hughes (pictured) commented: “Although its encouraging to see that 593 jobs were saved through examinership last year, the economic impact of Covid-19 has not yet been fully realised.

“Companies are being kept on life support with the help of the government, warehousing of Revenue debt and the forbearance of creditors. To be sustainable over the longer-term, many businesses will need to restructure to enable them to operate and succeed into the future.

“With many businesses historically profitable before enforced lockdowns, examinership may prove to be a viable option for those facing short-term challenges. Ireland’s examinership legislation is one of the most powerful and dynamic in the world and is significantly underutilised.”

There’s more detail of the index and information on the examinership process here.

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