Dáil Éireann Debate, Tuesday - 6 October 2020
165. Deputy Patricia Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps he will take in respect of the liquidation of a company (details supplied) to ensure there is a fair settlement for the workers; and if he will make a statement on the matter. [28861/20]
Amharc ar fhreagraDebenhams is a court-supervised liquidation, subject to oversight of the High Court and accordingly is sub judice. Under the Companies Act 2014, I have no power to intervene in a court-supervised liquidation.
Similarly, the Government cannot intervene with a liquidator, who has a statutory duty to realise assets and distribute to creditors in accordance with the law and who reports to the High Court.
Notwithstanding this, the Taoiseach, Government Ministers and I have met on a number of occasions with Debenhams employees and union representatives from Mandate to hear their views and concerns. While the Government cannot interfere with the High Court-overseen liquidation process, Ministers have sought at all times to ensure that the concerns of workers are heard and that the State’s employment and training services are responding to the needs of workers.
The Companies Act 2014 provides safeguards to ensure that a liquidation process complies with the relevant statutory requirements and that relevant parties can intervene. Under section 631 of the Companies Act, any contributory or creditor (including workers) of the company may apply to the court for a determination on any question arising in the winding up of a company.
The Companies Act also provides provisions which may be utilised by liquidators or creditors of an insolvent company in appropriate cases, including section 608, regarding the court power to order return of assets which have been improperly transferred; and section 599 where a related company may be required to contribute to the debts of a company being wound up.
A range of factors will be involved for liquidators or creditors in deciding whether to pursue litigation based on these provisions of the Companies Act.
Minister English and Minister Troy are both working with officials on the range of issues which are currently being considered in the context of Debenhams. They met most recently on 1st October and are committed to meeting soon with social partners. The issues under consideration are complex. Nevertheless, work on this has been prioritised and continues.
The Government is supportive of the best outcome that is possible for the workers, within the legal framework available. I continue to call on all parties to enter into discussions and engage towards a fair resolution.
