Examinership Part Two Flashcards
How long does court protection last in examinership?
Up to 12 months total, provided the examiner files proposals within 100 days (Regulations of 2022).
What actions are restricted during court protection under s.520 CA 2014?
No winding-up, no receivers, no legal actions, no security realization, no repossession, no surety suits, etc.
Can the examiner repudiate contracts?
Generally no under s.525, but court can approve repudiation of executory contracts under s.537.
What is the examiner’s power regarding negative pledge clauses?
Examiner can override them if enforcement hinders survival, with notice (s.525).
What is de-crystallisation of a floating charge?
A crystallised floating charge can revert back due to examiner appointment (Re Holidair Ltd).
Who determines the examiner’s remuneration?
The court – examiner’s fees have absolute priority over all creditors (s.554 CA 2014).
Can the examiner sell secured assets?
Yes, free of charge but proceeds must repay the secured party (s.530 CA 2014).
What is s.520A CA 2014 about?
Creditors cannot terminate or alter contracts because of examinership – overrides contract clauses.
Are employee claims stayed in examinership?
No – employees may still pursue claims even during protection.
What must examiner include in a s.534 scheme proposal?
Classes of creditors/members, impairments, equal treatment, implementation, changes to governance.
Who can vote on a scheme of arrangement?
Only impaired creditors – must pass by majority in number and value.
What are the court’s criteria to confirm proposals under s.541?
At least one impaired class must approve; proposals must be fair, equitable, not prejudicial.
What was held in Re Antigen Holdings?
Proposals must leave creditors at least as well off as in liquidation.
Why was the scheme in Re Tivway rejected?
It was a holding pattern, not a viable plan for survival as a going concern.
What did Re McInerney Homes confirm?
Court can reduce secured debt but must ensure no unfair prejudice; examiner bears proof burden.
