Turnaround / Restructuring

Companies / businesses face many challenges which can affect their solvency. The earlier the directors seek support, the more options that are available to them and the company.

Our expertise allows us to identify the source of the challenge(s), which may be, amongst others, share-holder disputes, ineffective management or incorrect product mix / pricing.

Once the source of the challenge is identified, we can model how the business would look if that challenge was regularised in order to determine the viability of the business. This allows us to design a bespoke strategic & operational plan which will safeguard the business’ future.

Scheme of Arrangement

A Scheme of Arrangement is a process used by a company in financial difficulty to reach a binding agreement with its creditors to pay back all, or part, of its debts over an agreed timeline.

Planning is critical to a successful scheme. Our experience can provide you with the necessary advice and support to plan and successfully execute a Scheme of Arrangement – smoothly and cost-effectively.

Examinership

The appointment of an Examiner offers a Company (a) Court protection from creditors and (b) breathing space to restructure the Company to ensure its survival.

To secure the appointment of an Examiner and, more importantly, successfully emerge from Examinership, there are legal and commercial considerations to be addressed, which is why you will need experts.

Our Partners have acted successfully as Examiner in single and group companies. For a confidential chat with Aidan, please contact +353 (0) 1 598 0801.

Creditor Voluntary Liquidation

When a company is insolvent (i.e. unable to meet financial obligations as they fall due and / or its liabilities exceed assets and there is no prospect of survival), the shareholders, with the assistance of Directors, will convene a meeting of creditors, who will vote to appoint a preferred liquidator.

The liquidator has many functions, the primary of which are:

1. To realise the assets of the company
2. To investigate the affairs of the company and report to the Office of the Director of Corporate Enforcement regarding same
3. To distribute funds to creditors in accordance with the Companies Act.

Sabios have significant experience in winding up companies, whilst adhering to statutory obligations; our primary objective is to achieve the best outcome for creditors.

We do this by investing time in understanding the value in each company. Our experience has shown that in certain circumstances, the Company might be insolvent but the business is viable. In these circumstances, we would seek to sell the business itself, rather than liquidating assets on a piece-meal basis.

Court Liquidations

A number of stakeholders including shareholders, directors or creditors may petition the High Court to wind up a Company. The High Court appoints a liquidator who, once appointed, is an Officer of the Court and must report to the Court (Examiner).

In addition to Court reporting requirements, a Court appointed liquidator has, amongst others, the following duties:

1. To realise the assets of the company
2. To investigate the affairs of the company and report to the Office of the Director of Corporate Enforcement regarding same
3. To distribute funds to creditors in accordance with the Companies Act.

Our extensive experience in winding up companies whilst adhering to statutory obligations means we are well-placed to achieve our primary objective in such an engagement: achieving the best outcome for creditors.

Members’ Voluntary Liquidation

A Members’ Voluntary Liquidation (MVL) is a formal liquidation process which enables shareholders to bring a solvent company to an end and unlock the proceeds in a tax efficient and cost-effective manner.

In many cases, directors can also take advantage of Entrepreneurs’ Relief – a hugely beneficial tax relief scheme which cuts the effective rate of CGT down to just 10% (subject to an individual lifetime limit of €10m). For many companies, a solvent liquidation is the most appropriate way of releasing funds while minimising the associated tax liability.

Using an MVL as part of your exit strategy

If you are considering closing down your limited company, now or in the near future, it is wise to contact an insolvency practitioner at the earliest available opportunity. Devising an appropriate exit plan ahead of time gives you a clear route forward, allowing you to plan your next move while having a solid strategy in place.  

Alternatives to an MVL

Striking off a company, a process sometimes known as dissolving, is an informal way of closing down a solvent company which is no longer required and is an alternative to the MVL process. The process is relatively straightforward, as long as no objections to the strike off application are received, and it is also a cheaper option than an MVL.