A company that is:
(a) unable to pay its debts; or
(b) that is imminently likely to become unable to pay its debts,
may be placed under Company Recovery Procedure (CRP) by means of an application to be filed before the First Hall of the Civil Court.
In virtue of such an application the Court will appoint a Special Controller who will take over, manage and administer the business of the company. The Special Controller may be appointed for a period not exceeding 12 months as the Courts may determine. However, the Courts may, upon good cause being shown, extend the period by such additional period or periods that in aggregate do not exceed a further 12 months.
Who may file the application?
The application may be filed by:
- the company following an extra-ordinary resolution; or
- a decision of the board of directors; or
- the creditors of the company representing more than ½ in value of the total creditors of the company.
Does CRP apply to all companies?
This procedure applies to all companies but, in the case of ‘small’ companies*, for the said procedure to apply they must have more than Euro 465,874.68in value owed to creditors.
A company cannot be placed under CRP if it has already been dissolved voluntarily or if a winding up order has already been made.
Requisites of the CRP application
The application shall, as far as practicable contain the following information:
(1) the full facts, circumstances and reasons that led to the company’s inability or likely imminent inability to pay its debts; and
(2) a statement indicating how placing the company under CRP can improve the company’s financial situation in the interests of the creditors and employees.
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