Ladbrokes (Irl) Ltd & ors & Companies (Amendment) Act 1990 [2015] IEHC 381 (17 June 2015)

Ladbrokes (Irl) Ltd & ors & Companies (Amendment) Act 1990 [2015] IEHC 381 (17 June 2015)

The decision as to what information to provide to potential investors in an examinership is a matter for the commercial judgment of the examiner. The court will not interfere with that judgment unless it is shown to be so unreasonable as to be perverse or made in bad faith. In this case, the examiner's refusal to provide shop-by-shop trading data and other sensitive information to Boylesports was an exercise of commercial judgment, supported by experienced insolvency practitioners, and not so unreasonable as to warrant court intervention. The applicant, as a creditor, had locus standi to bring the application, but the examiner's decision stands.

Citation
[2015] IEHC 381
Parties
Company in Examinership: Ladbrokes (Ireland) Limited; Company in Examinership: Ladbrokes Leisure (Ireland) Limited; Company in Examinership: Dara Properties Limited; Applicant/interested Party/creditor: Boylesports; Examiner: Ken Fennell
Jurisdiction
Ireland
Judgment Date
17 June 2015
Procedural Posture
Application Under Companies (amendment) Act 1990 / Companies Act 2014 / Interlocutory Application During Examinership Process
Outcome
Application refused
Legal Topics
Examinership, Disclosure of Commercial Information, Due Diligence, Creditor Rights, Commercial Sensitivity, Standard of Review of Examiner Decisions
Insolvency Company Law Examinership Disclosure of Commercial Information Due Diligence Creditor Rights Commercial Sensitivity Standard of Review of Examiner Decisions

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Parties

Ladbrokes (Ireland) Limited

Company in Examinership

Ladbrokes Leisure (Ireland) Limited

Company in Examinership

Dara Properties Limited

Company in Examinership

Boylesports

Applicant/interested Party/creditor

Ken Fennell

Examiner

Procedural Posture

Application Under Companies (amendment) Act 1990 / Companies Act 2014 / Interlocutory Application During Examinership Process

Legal Issues

  1. 1 Whether an examiner is obliged to provide sensitive commercial information to a bona fide potential investor in examinership
  2. 2 Whether the applicant has locus standi as an interested party/creditor to bring the application
  3. 3 What is the standard of review for an examiner's commercial judgment in the investment process

Ratio Decidendi

The decision as to what information to provide to potential investors in an examinership is a matter for the commercial judgment of the examiner. The court will not interfere with that judgment unless it is shown to be so unreasonable as to be perverse or made in bad faith. In this case, the examiner's refusal to provide shop-by-shop trading data and other sensitive information to Boylesports was an exercise of commercial judgment, supported by experienced insolvency practitioners, and not so unreasonable as to warrant court intervention. The applicant, as a creditor, had locus standi to bring the application, but the examiner's decision stands.

Court Disposition

Application refused

Orders

  • The court refused to direct the examiner to provide the requested commercially sensitive information to Boylesports.
  • No order was made requiring further disclosure beyond what the examiner had already provided.