Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I accept the amendment has been brought in good faith and in an attempt to improve the process and provide cost savings. However, it is not workable from a practical perspective. I will explain why. On initial appointment the process adviser must notify creditors, the Revenue Commissions and employees of his or her appointment.

The notification must be sent by the fifth day and include a request for information from parties concerned in respect of the debts owed to them and any other information they consider material to the development of a rescue plan in respect of the company. The Bill provides people with 14 days to respond to this request and a further 72 hours where they fail to do so. This means that it could be the 22nd day after a process adviser is appointed that the adviser has all the information he or she requires to start formulating a rescue plan.

Once the plan is prepared, the process adviser must give members and creditors seven days' notice of the meeting to consider the plan and must report back to the company by the 49th day. This means that, in reality, the process adviser has 20 days to prepare the rescue plan. If I were to accept Deputy O'Reilly's amendment, this would be further reduced, to 11 days. It is highly unlikely that even the most skilled insolvency practitioner could prepare a comprehensive rescue plan within that timeframe. In circumstances where the process adviser receives all necessary information and can quickly prepare a plan, however, he or she can report in advance of the 49th day. This is the outer limit. If the adviser has all the information to hand earlier and if the company is smaller, less cumbersome and able to do so earlier, it may be done. The Bill simply mandates that the 49th day after appointment is the latest point at which the rescue plan can be delivered to the company. The timelines in the Bill have been carefully examined by my officials and the Attorney General's office. As drafted, they reflect a fair balance between the company's need for a speedy resolution and the creditors' need to have sufficient time to consider their position and seek legal advice, if necessary.

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