Several major property developers have made preparations enabling them to apply to the High Court for examinership protection at short notice if their banks seek to appoint receivers to their businesses.

One insolvency expert said that several developers had hired accountants to put together independently-audited accounts of their businesses, which are required when an examinership is being sought.

‘‘It is happening all over the place,” he said. ‘‘The banks tend to appoint receivers on a Friday and that doesn’t give the developers much time to put together the required independent accounts over the weekend if they want to try for an examinership.”

The examinership process affords a company protection from its creditors for at least 70 days, with the possibility of a further 30 days’ extension. Creditors cannot petition to have the company wound up during that period which allows for unsecured creditors to have their debts written down.

Receiverships are seen as much more favourable to the banks, because the receiver will immediately go into a company and try to sell off its assets.

It is understood that a number of developers with debts of between €40 million and €80 million have already had independent accounts prepared, in case they decide to seek examinership.

Insolvency experts said the number of examinerships was growing and more would emerge in the months ahead.

‘‘It is up to the courts to decide whether to grant an examinership and it is only useful if you think there is something there to salvage,” said one practitioner.

Banks may not be aware that some of their clients have already done the groundwork for an examinership petition in circumstances where the bank moves to appoint a receiver.


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