Archive for the ‘Banking’ Category

Restructuring debt for Mortgage holders

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Allied Irish Banks in restructuring mode. Options are now evolving  and Debtors should at a minimum be talking to their bank in search of suitable solutions.

Indebted SME’s to benefit under new Multi Bank Cooperation

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Facility for multi-banked debtors to simultaneously deal with all banks without the need for a formal insolvency arrangement.

corporate restructuring and insolvency review of 2013

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On the corporate insolvency front, 2013 showed positive signs of corporate recovery with overall corporate insolvencies down 19%, Liquidations down 22% , Receiverships down 9% and Examinerships down 22%. With the introduction of the new examinership legislation aimed at the SME sector, liquidations should continue to decline  while more companies avail of the  new examinership  ‘lite’ route. An excellent article by kavanaghfennell.


2013 Business Failures Down 19% compared to 2012

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An update on Irish insolvency activity during 2013 

A decline in liquidations and receiverships

Scope for growth in Examinerships

The uptake for personal insolvency is the big unknown going into 2014. The level of both structured insolvency arrangements and bankpuptcy should increase significantly during 2014 but the cost of such arrangements remains the key issue for the debtor while  the required professional input is both highly technical and time-consuming.

The Great Deleveraging – The Next Phase in Irish Banking

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 Interesting article on what’s to come for the heavily  indebted, both a treat and an opportunity for most punters and a clear warning that the  heavily indebted will be dealing with a new banker within 2 years. If  he/she is a practical banker, it must be for the good. For those awake the opportunity is unbelievable but  those asleep will be eaten by sharks. For those with no debt I  can only say well done.

Workers may have to repay banks out of funds from their pension

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Pensions could be on the line for defaulting debtors. During the 80′s and 90′s, pension companies ridgidly maintained that pensions were beyong the reach of ones creditors  and were the only bundle-in-the-jungle  that couldn’t be got at by creditors. How wrong they were, it was salesmans talk and talk was cheap. Pension funds are now on the line and if ones pension was taken out with the bank your a sitting duck. Many people bought property as their pension fund, gearing up to gamble and we all know what happened. Others used Self Administered Schemes to complicate issues. Between set-up costs, management charges and dismantling costs there mightn’t be much left after  the professional advisors and exit taxes skin the cat. The older generation always said  ‘keep it simple’. If only people had listened. The Irish don’t like to call themselves gamblers, instead  they invest on  horses, dogs, football matches, property syndicates, pension funds and lotto among others. Now the banks are after the property and pension funds. Pity they didn’t stick to the horses and dogs and the hope value in the lotto ticket. Anyone with undervalued property, a stuffed pension fund and a bucket-load of loans urgently needs good practical professional advise.

Working out of debt

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It only just begun, its not just Ireland but an issue facing most developed countries. Private sector deleverage preceeds government deleverage and it takes about 5 years before positive results begin to become apparent. The catalist for economic recovery is generally a currency devaluation and while the collapse of the Euro is a possibility, significant quantitative easing (printing money)  looks the more probable option. This effectively means your Euro will be worth less. Bust banks in bust economies aren’t helping. Until there is decisive EU leadership,the path to recovery will be slow and painful but  as any seasoned businessman well knows, no pain no gain.

Zoellick says ‘world is in a danger zone’

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The world is now in turmoil like Ireland has been for the past three years.

We know what its like to live in a broken economy, but we’ve yet to experience living with a broken currency. Thats if we’ve any left.

Banking system of developed world ‘insolvent’

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Mind your money and invest long-term in real assets.

John O'Connell & Co., Chartered Accountants, Corporate Recovery & Insolvency Practitioners, Independent Financial Centre
33 Bank Place, Mallow, Co. Cork, Ireland :: Phone +353 (0)22-21132