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| Four Courts, Dublin
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Figures released today by InsolvencyJournal.ie show that Irish insolvencies for the first four months of 2009 were 486, compared to 193 for Jan-April 2008 and 107 during the same 2007 period. This shows an increase of 152% from the 2008 four-month figures and a 354% increase from the 2007 data.
On a positive note, April 2009 insolvencies were 118 in comparison to 144 for March, a decrease of 18%.
Breakdown of Jan-April 2009 insolvencies of 486 companies:
See graph below for monthly analysis:
Top three worst hit industries:
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Construction: 150 companies – 31% of total insolvencies
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Hospitality: 72 companies – 15% of total insolvencies.
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Retail: 69 companies – 14% of total insolvencies.
Glossary of terms:
Creditors Voluntary Liquidation: In a Creditors’ Voluntary Liquidation, the Liquidator is appointed to the company by the Creditors of the insolvent company
Court Liquidation: Official Liquidation is the name given to the form of liquidation which is brought about by Order of the High Court. The procedure is brought about by way of petition. The petition can be taken by the company itself or creditors of the company.
Examinership: Examinership is a process whereby the protection of the Court is obtained to assist the survival of a company. It allows a company to restructure – it is an alternative to winding up the company in financial difficulties
Receivership: A Receiver is usually appointed by a secured creditor under a Debenture containing a fixed and/or floating charge over all or most of the company’s assets. The Receiver is usually appointed because either the principal under a debenture is in arrears, the interest under a Debenture is in arrears, or some other event has happened by which under the terms of the debenture the security has become enforceable. The powers of a Receiver are essentially to manage the business of the company, carry it on and realise assets so as to repay the debenture holder
