Is a facility to seek the protection of the High Court whilst negotiating a structured settlement with Creditors on the back of further equity or equity equivalent investment, Examinership can be a highly beneficial procedure for companies with a sustainable commercial future but which are unable to pay their debts.
The role of the Examiner was first introduced in the Companies (Amendment) Act 1990 and subsequently modified by the Companies (Amendment) No 2 Act 1999. The Examination process during which the company concerned is protected from its creditors can last for a period of up to 4 months affording the Examiner and the company ample opportunity to seek and negotiate the investment package required and to formulate a Scheme of Arrangement for the discounting and payment of creditors.
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