Examinership as a company rescue option continues to gain advantage - the recent hearing of the McInerney rescue scheme in the High Court illuminated the scope for such a scheme to incorporate the write-down of even secured debt. It was unfortunate for the specific scheme proposed that the Court deemed the secured creditors (a consortium of banks) to have been asked to take too large a write-down and so the scheme failed, but at least the principle of secured debt write-down has been established. This is a welcome development.
cheap viagra buySo three of the main obstacles to a viable rescue mechanism for companies have been removed - Revenue debt inflexibility, inescapable leases, and uncooperative secured creditors.
Revenue debt, to be fair, has been part of the system and amenable to compromise from the beginning, but it is still worth remembering that Revenue debt may only be written off in the context of a formal statutory scheme such as examinership and not in an informal scheme. The Court approves any proposed scheme of arrangement and so can bind in the Revenue, even if it be against their wishes, if the Court deems the overall balance of the scheme to be faircan you buy viagra in dubai.
Inflexible unprofitable leases on property and other such long-term, and apparently inescapable, burdens on companies have also, in recent years, come within the range of debts than may be compromised or even disclaimed if the Court deems it necessary for the survival of a company. Such contracts were previously untouchable and any scheme of arrangement had to accommodate them unaltered and work around them, thus reducing the options available and reducing further the chances of survival for the company. In simple terms, the examiner may request the Court for the power of a liquidator to disclaim such onerous contracts if it can be demonstrated that such disclaimer is necessary for the viability of a rescue plan. So, another sacred cow is removed from the path!cheapest generic viagra cialis
cheap viagra indiaSecured creditors such as banks were also, previously, able to virtually remove themselves from the negotiations of a viable scheme of arrangement, as they could cite their right not to enter the arrangement and to rely upon their security - such inflexibility could mean that any scheme of arrangement had to work around the uncompromised debt burden, again, reducing the scope of viable schemes of rescue. Mr Justice Frank Clarke's judgement on the McInerney case appears to confirm that such secured debt may indeed be drawn within the scope of a rescue scheme and be written down within such a scheme - it does not mean that the debt becomes unsecured, merely that the amount secured is reduced in value.
cialis pillsExaminership is coming into its own as a rescue mechanism as these developments dislodge the previously hard-stuck obstacles of contract agreements and secured debt. Meanwhile, one might question where Administration - the prime rescue mechanism for our neighbours in GBNI - is going, with the growing phenomenon of "Pre-pack Administration" avoiding the question of rescue and instead assisting in what might be uncharitably described as officially-sanctioned "Phoenix Syndrome" sales of assets.
As Administration veers toward becoming a mere asset-sale mechanism so Examinership grows in flexibility as a rescue one. This inclusion secured debt is a major advance in this processwhere to buy cialis online in uk.