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High Court orders winding up of Cork Credit Union

Summary

In a High Court hearing on 23 July 2014, Mr Justice Nicholas Kearns ordered the winding up of Berehaven Credit Union (BCU), a Munster‑based credit union with 3,500 members. The Central Bank had requested the order after learning in 2010 of serious governance and financial problems at BCU, including irregular lending to connected parties, failure to meet regulatory reserve requirements, and a negative regulatory reserve ratio of –3.8%. The bank had directed BCU to limit lending, cap investments, and restore its regulatory reserve ratio to 10%, but BCU could not raise the €1.3 million needed to comply. The court appointed Jim Hamilton and David O'Connor of BDO Ireland as provisional liquidators, noting that an orderly wind‑up was in the public interest and would protect depositors under the €100,000 guarantee scheme. The case was adjourned for a week to allow further proceedings.

Who, what, where, when and why

What: Report matter: High Court orders winding up of Cork Credit Union. Procedural stage: hearing_or_decision

When:

• November 2010 Other
• 2014-07-23 Publication

Why: Counsel said the Central Bank was seeking the appointment of the provisional liquidators because it is of the opinion Berehaven CU "maybe unable to to meet its obligations to creditors," and it has failed to comply with a direction of the Central Bank in relation to its reserve position. CNI source report

Places mentioned

Topics

Stage Hearing Or Decision

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Read the original CNI report