With the fundamental shift on the Irish economy over the past year, there is an increasing demand on the accountancy profession for Corporate Recovery and Insolvency services. Accountants whose practice profile would have traditionally not have had significant exposure to insolvency matters are now being asked to advise on this area, and bankers who previously had little exposure to insolvency are climbing a steep learning curve in understanding all of the issues arising.
Chartered Accountants Ireland has designed a one day course to provide updates on the key areas of examinership, debt collection, corporate recovery and personal insolvency. The course incorporates a number of case studies which will show how solutions can be practically applied.
Kieran Wallace of KPMG will commence the day with a presentation on examinerships which will review current trends and lessons to be learned from recent cases. He will address the importance of the Independent Accountants Report and the format and design of the Schemes of Arrangement.
As many businesses are encountering difficulty in cash collection, Kieran will review the different methods of debt collection available and outline the pros and cons of each method and review current trends in debt collection.
Tom Kavanagh of Kavanagh Fennell will present three realistic case studies (Leisure, Construction and Retail sectors) outlining the options available to an auditor who may have a client in trouble and would like to assess the various insolvency mechanisms that are available.
One case study will focus on an informal restructuring in a situation where the level of bank debt is on an asset (i.e. hotel) is now significantly greater than the market value of that asset and the options that may be available in dealing with the lender. A second case study will consider a situation whereby a company is under serious pressure from creditors and a formal insolvency appointment may present the existing promoters with an opportunity to complete the development in an efficient manner and protect their personal assets, while keeping costs to the lender at a minimum. The final case study will examine the restructuring options available to a retail business in financial difficulty.
A consequence of the collapse in property values has been the banks calling upon guarantors to settle personal guarantees. Not only are the banks calling upon personal guarantees, but landlords and trade creditors with personal guarantees are also becoming more pro-active. Indeed, the current level of personal bankruptcy is unprecedented in the history of the state. It is inevitable that some guarantors will end up being declared bankrupt, and these bankruptcies will present a new market for Insolvency Practitioners. Kieran will present a talk on the practical conduct of bankruptcy estates. He will outline the consequences of a bankruptcy order on a bankrupt and outline what steps the appointed trustee generally takes to realise assets, including the family home. He will also address how bankrupts may exit or discharge themselves from bankruptcy.
Jim Stafford will present a talk on how insolvent individuals should be advised in order to avoid being declared bankrupt. In particular, he will set out what skill sets are required by a practitioner to advise in this evolving area. Jim will briefly review what legislation (apart from the 1988 Bankruptcy Act) is relevant. His talk will have a heavy focus on how to deal with banks, and, in particular, how to assess the strength of a bank's case against a customer/guarantor. He will also outline what banks expect to receive in terms of settlement proposals, and how settlement negotiations should be conducted. Finally, he will conclude his talk with the presentation of three typical case studies showing how all the different strands pull together in order to reach settlement with a bank.
William O'Grady of O'Grady Solicitors will conclude the day with a legal update on a wide range of matters affecting Personal Bankruptcy, Examinerships, Receiverships and Liquidations. As part of his talk will review significant case law, including cases such Harrahill-v- Cuddy, Vantive Holdings, Galium Limited, Laragan Developments Limited and Wood Products Longford Limited.
The course will appeal to practising accountants, bankers and credit managers.
Jim Stafford
Principal
Friel Stafford Corporate Recovery
The Insolvency Update will take place in Sligo, Dublin, Limerick, Cork and Mullingar throughout the rest of 2009.
For more information and online booking please visit www.charteredaccountants.ie/cpd