Majority of companies entering examinership since crash survived
More than half of affected companies now trading normally, with 23 per cent dissolved
In the 10-year period to the end of 2016, an average of 42 Irish companies entered the examinership process each year. Photograph: iStock
The majority of companies that have sought temporary protection from creditors since the financial crash are now back trading as normal.
Of the 420 companies that had an examiner appointed between 2007 and 2016, some 56 per cent of them are now back on their feet.
An analysis of the figures by business and credit risk analyst Vision-net.ie indicates the wholesale and retail sector accounted for 19.5 per cent of all examinerships in the 10-year period, with professional services accounting for 13 per cent.
When the tourism industry took a hit in Ireland, some 52 companies in that sector entered examinership, 10 of which were dissolved and 14 of which were liquidated.
An average of 42 companies entered the process designed to assist restructuring of an insolvent company each year over the period.
“External circumstances, economic slowdown and unforeseen market action can sometimes destabilise companies which are otherwise viable,” said Christine Cullen, managing director of Vision-net.ie. “In those circumstances, nervous creditors can send companies under without giving them a chance to restructure and recover.
“The data clearly shows that, when given some breathing space, a lot of companies can and do overcome these temporary obstacles.”
The data also shows that 23 per cent of companies that entered the examinership process have now been dissolved while 20 per cent are going through a liquidation process.