In the Matter of Bookfinders Ltd (in interim examination) & In the Matter of the Companies Act 2014 [2015] IEHC 769 (26 November 2015)

In the Matter of Bookfinders Ltd (in interim examination) & In the Matter of the Companies Act 2014 [2015] IEHC 769 (26 November 2015)

The court found that the petitioners breached their duty of full disclosure under s. 518 of the Companies Act 2014 by failing to disclose material facts, but determined that refusing to hear the petition would be disproportionate given the potential loss of employment. The court was satisfied, based on the Interim Examiner's independent report and assessment, that there was a reasonable prospect of the company's survival as a going concern, and therefore granted the protection of the court and appointed the examiner.

Citation
[2015] IEHC 769
Parties
Petitioner/applicant: Bookfinders Limited; Respondent/objector: KBC Bank Ireland plc
Jurisdiction
Ireland
Judgment Date
26 November 2015
Procedural Posture
Examinership Petition / Hearing of Petition for Appointment of Examiner and Related Interim Relief
Outcome
Petition granted; company placed under protection of the court; examiner appointed.
Legal Topics
Examinership, Material Non Disclosure, Duties of Good Faith, Appointment of Examiner, Corporate Rescue
Insolvency Company Law Examinership Material Non Disclosure Duties of Good Faith Appointment of Examiner Corporate Rescue

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Parties

Bookfinders Limited

Petitioner/applicant

KBC Bank Ireland plc

Respondent/objector

Procedural Posture

Examinership Petition / Hearing of Petition for Appointment of Examiner and Related Interim Relief

Legal Issues

  1. 1 Whether there was material non-disclosure by the petitioners in breach of s. 518 of the Companies Act 2014
  2. 2 Whether the company has a reasonable prospect of survival as a going concern

Ratio Decidendi

The court found that the petitioners breached their duty of full disclosure under s. 518 of the Companies Act 2014 by failing to disclose material facts, but determined that refusing to hear the petition would be disproportionate given the potential loss of employment. The court was satisfied, based on the Interim Examiner's independent report and assessment, that there was a reasonable prospect of the company's survival as a going concern, and therefore granted the protection of the court and appointed the examiner.

Court Disposition

Petition granted; company placed under protection of the court; examiner appointed.

Orders

  • Bookfinders Limited placed under the protection of the High Court pursuant to s. 509(1) of the Companies Act 2014.
  • Mr. McAteer appointed as Examiner to Bookfinders Limited.