Financial Services Update: Ireland Adopts ‘Alternative A'

In May 2017, the Irish Government signed a commencement order giving immediate effect to the 'Alternative A' insolvency remedy of the Aircraft Protocol to the Cape Town Convention on International Interests in Mobile Equipment (the Convention). The long-awaited implementation of 'Alternative A' gives force of law in Ireland to a regime which is similar to the insolvency regime in the USA, known as Chapter 11 "reorganisation" bankruptcy. The insolvency remedies in the Convention were designed to strengthen creditor's positions. The implementation of 'Alternative A' has the effect of giving greater uniformity and consistency of insolvency remedies in Ireland comparable with other major aviation and debt capital markets jurisdictions.