The Central Bank of Ireland has made an application today to the High Court to have provisional liquidators appointed to Charleville Credit Union . David O’ Connor and Jim Hamilton of BDO were appointed as joint provisional liquidators.
The Central Bank has made this application as it has formed the view that Charleville Credit Union is in breach of a number of regulatory directions and is in a distressed financial position. In the absence of taking this action, it is the Central Bank’s view that there could be a disorderly failure of Charleville Credit Union.
In presenting its assessment to the court, the Central Bank outlined that it believes all feasible options available to the credit union to raise and maintain its reserves at the levels required by law have been exhausted. The Registry of Credit Unions has been engaging with Charleville Credit Union over a number of years seeking remediation of the weaknesses in its financial position. The Central Bank is of the view that the inability of the credit union to address its reserve position, despite previous receipt of external funding, has resulted in it being necessary to apply for the winding up of the credit union. The Central Bank is of the view that the credit union has been provided with the opportunity to address the issues concerned and, in the opinion of the Central Bank, they have not been adequately addressed.
The decision to apply to the High Court to wind up Charleville Credit Union was made by the Governor of the Central Bank. The legal grounds under which the Governor made this decision are set out in the Central Bank and Credit Institutions (Resolution) Act 2011 (:
a) in the opinion of the Central Bank the winding up of the credit union is in the public interest;
b) the credit union has failed to comply with a direction of the Central Bank under section 87 of the Credit Union Act 1997;
c) the Central Bank considers it is in the interest of persons having deposits with the credit union that it be wound up.