Dáil Éireann Debate, Wednesday - 12 March 2014
80. Deputy Tom Fleming asked the Minister for Jobs, Enterprise and Innovation if he will intervene and ensure all 700 jobs in a store (details supplied) are saved; if he will make immediate contact with this fully Irish-owned company and the examiner and ensure an early resolution to the current impasse is found; and if he will make a statement on the matter. [12364/14]
View answer83. Deputy Michael Lowry asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to the concerns of staff at a store (details supplied) in view of the fact the chain of stores is in examinership; the steps being taken to ensure all 700 jobs are protected and secured; if he will give an assurance that any bids for this store are examined in the context of job and store protection; and if he will make a statement on the matter. [12453/14]
View answerI propose to take Questions Nos. 80 and 83 together.
I understand in the case of Staunton sports that the Examiner is currently in the process of engaging with various parties who have expressed an interest in the business, including the Management Team, and as part of the process has requested proposals from each of the parties as to their plans for the business and the employees of the company. The Examiner has not yet concluded this process. It should be noted that as Examinership is a judicial process, I have no function as Minister.
Examinership is the main debt restructuring system for companies in Ireland and has been in existence since 1990. Examinership allows for the rescue of companies that find themselves insolvent but have the potential to return to financial viability and continue in operation into the future. The key feature of the process is a period of court protection, lasting up to 100 days, during which no one may institute proceedings against the company or petition for the company to be wound up. The Examiner uses this time to devise a scheme of arrangement, in consultation with creditors, the company management, potential investors and any other parties that would be affected by that scheme. The scheme of arrangement is then put to the court. If a majority of the company’s creditors agree and the court approves, it becomes binding.
I believe that Examinership is a good option for companies that have real prospects for the future but find themselves in financial difficulty at a point in time. It is also a balanced procedure, taking into account both the interests of the ailing company and the rights of the creditors, and giving the courts a role in ensuring a fair and appropriate outcome.
For that reason, the Oireachtas enacted the Companies (Miscellaneous Provisions) Act 2013 late last year, to allow small private companies to apply for Examinership directly in the Circuit Court, rather than having to go first to the High Court. I hope that this will make Examinership an option for more companies in the future. In the meantime, I am keeping the law on Examinership under review to identify if there are any other ways in which we can make it less costly.
