Preventive Restructuring Directive Takes Effect In Ireland

Introduction

Changes have been made to the Irish examinership process by the European Union (Preventive Restructuring) Regulations 2022, which were signed by the Minister for Enterprise, Trade and Employment (the "Regulations")¹ on Friday, 29 July 2022. The Regulations provide for the transposition of the Preventive Restructuring Directive² (the "Directive") into Irish law. The Directive's principal objective is to ensure that all member states of the European Union ("Member States") have comparable preventive restructuring processes to enhance the efficient functioning of the internal market.

Given that Ireland's existing examinership process already aligns to a substantial effect with the requirements of the Directive, the approach favoured by the Irish Government has been to integrate those requirements of the Directive which were not already provided for in Irish law with the existing examinership process under Part 10 of the Companies Act 2014 (the "Act").