of the Companies Act 2014
provides for the application of certain bankruptcy rules in the winding up of insolvent companies. The section derives from section 284 of the Companies Act 1963.
provides that the bankruptcy rules apply in relation to the winding up of insolvent companies in respect of (a) the respective rights of secured and unsecured creditors; (b) debts provable; and (c) the valuation of annuities and future contingent liabilities.
Unsecured creditors are those whose debt is not secured on any of the company's assets. Examples of unsecured creditors are, for example, employees and the suppliers of goods and services. However among unsecured creditors, employees belong to a preferential class. Section 621 of the Companies Act 2014 treats employees in a preferential manner with regards to all wages or salary up to the value of €10,000 per employee. Section 49 of the Workplace Relations Act 2015 extends preferential treatment to include all compensation payable by virtue of Part 4 of that Act by the company to an employee. The other principal preferential creditor under section 621 is the Revenue Commissioners. Where there are insufficient funds to pay the preferential creditors in full, they rank equally amongst themselves.
As the provisional liquidators were appointed by the High Court on 12 June 2015 they operate under the jurisdiction of the Court and I have no direct function in relation to this liquidation.