Ms Tara Keane:

As the Minister of State correctly stated, there is a provision in the Bill which allows for the repudiation of contracts. What happens is that, subject to court approval, they can formally accept or reject certain uncompleted contracts to which the company is party. Any party which suffers a loss as a result of that is awarded compensation, and this ranks as an unsecured debt as part of the rescue plan. Where this comes in with regard to leases is that, in examinership, the repudiation clauses are frequently used to renegotiate rents and other onerous contracts. It is actually very unusual for it to end up in court because it provides the stick with which one can encourage those negotiations and mutual reorganisation of the contract. I should also state that this is a particular provision we are looking at quite closely with the Attorney General to refine it and streamline it further.