Irish High Court Ruling in Corporate Rescue Case: Revenue Liabilities & Examinership

Welcome Irish High Court Ruling in Corporate Rescue Case: Clarification on Import and Effect of Undertakings to Discharge Current Revenue Liabilities During Period of Protection Afforded by Examinership

It has become a frequent feature for Irish companies seeking court protection through examinership to provide a written undertaking at the petition stage that it will discharge in full post-petition taxes to the Irish Revenue Commissioners (the ‘Revenue’) that accrue and fall due during the period of protection. A recent written judgment of the Irish High Court (Ms Justice Baker) in Harley Mechanical Services Ltd & the Companies Act 2014 (the ‘Proceedings’) has provided welcome clarity on the import and effect of such undertakings.

Walkers’ Dublin office acted on behalf of the examiner/liquidator in the Proceedings and was successful in challenging an order which had the effect of deeming unpaid Revenue liabilities as costs in the examinership and thus given special status such that these monies would be unavailable to the liquidator to discharge his own fees and the claims of other creditors.


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This article first appeared in Volume 15, Issue 4 of International Corporate Rescue and is reprinted with the permission of Chase Cambria Publishing -


Gavin SmithPartnerT +353 1 470
Greg CooneySenior AssociateT +353 1 470