In the Matter of Eircom Ltd & Ors [2012] IEHC 158 (30 March 2012)

In the Matter of Eircom Ltd & Ors [2012] IEHC 158 (30 March 2012)

The companies are insolvent, but independent accountants confirm a reasonable prospect of survival subject to conditions. Court protection and appointment of an interim examiner are warranted to facilitate restructuring and maximise enterprise value. Pre-petition liabilities should be discharged to ensure business continuity.

Citation
[2012] IEHC 158
Parties
Applicant: Eircom Limited; Applicant: Meteor Mobile Communications Limited; Applicant: Irish Telecommunications Investments Limited; Notice Party: Messrs. A&L Goodbody and Kirkland and Ellis; Notice Party: Maples and Calder and Allen and Overy; Notice Party: J.P. Morgan; Notice Party: Bank of New York; Notice Party: Revenue Commissioners; Notice Party: Singapore Technologies Telemedia; Notice Party: Eircom ESOP; Notice Party: Rabo Bank International; Notice Party: J.P. Morgan Chase Bank NA; Notice Party: Dresdner Bank AG; Notice Party: Deutsche Bank AG; Notice Party: ComReg
Jurisdiction
Ireland
Judgment Date
30 March 2012
Procedural Posture
Application for Appointment of Interim Examiner / Judgment on Interim Examiner and Court Protection
Outcome
Court protection granted; interim examiner appointed; pre-petition liabilities to be discharged; hearing date fixed.
Legal Topics
Examinership, Corporate Restructuring, Court Protection, Pre Petition Liabilities
Insolvency Company Law Examinership Corporate Restructuring Court Protection Pre Petition Liabilities

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Parties

Eircom Limited

Applicant

Meteor Mobile Communications Limited

Applicant

Irish Telecommunications Investments Limited

Applicant

Messrs. A&L Goodbody and Kirkland and Ellis

Notice Party

Maples and Calder and Allen and Overy

Notice Party

J.P. Morgan

Notice Party

Bank of New York

Notice Party

Revenue Commissioners

Notice Party

Singapore Technologies Telemedia

Notice Party

Eircom ESOP

Notice Party

Rabo Bank International

Notice Party

J.P. Morgan Chase Bank NA

Notice Party

Dresdner Bank AG

Notice Party

Deutsche Bank AG

Notice Party

ComReg

Notice Party

Procedural Posture

Application for Appointment of Interim Examiner / Judgment on Interim Examiner and Court Protection

Legal Issues

  1. 1 Whether the companies are insolvent and qualify for court protection under the Companies (Amendment) Act 1990
  2. 2 Whether there is a reasonable prospect of survival as a going concern
  3. 3 Whether an interim examiner should be appointed

Ratio Decidendi

The companies are insolvent, but independent accountants confirm a reasonable prospect of survival subject to conditions. Court protection and appointment of an interim examiner are warranted to facilitate restructuring and maximise enterprise value. Pre-petition liabilities should be discharged to ensure business continuity.

Court Disposition

Court protection granted; interim examiner appointed; pre-petition liabilities to be discharged; hearing date fixed.

Orders

  • Protection of the court afforded to the companies.
  • Appointment of Mr. Michael McAteer of Grant Thornton as interim examiner.