THE examinership of Horse Sport Ireland (HSI), a legal bid to salvage the national governing body for the equestrian sector, has been extended by a further 30 days to 100 days by the High Court.

Barrister Ross Gorman, counsel for the examiner Joe Walsh, told Mr Justice Cian Ferriter on Friday that the extra 30 days of investigation and negotiations was necessary to complete Mr Walsh’s efforts to save the company. The company has been under the protection of the court from its creditors after Walsh was appointed in late August following a bid by its directors to save it.

This would put the examiner’s fourth and possibly final report in the diary for December 1st. His third report, detailed below, included important updates including that DAFM has confirmed approval, in principle, for the granting of the all-important Breeding Services Contract to HSI.

Barrister Arthur Cunningham, for HSI, had earlier told the High Court that, while the company was unable to pay its debts, an independent expert was of the view that it could be saved through examinership and that Walsh had agreed to act. He said at the time that the company had incurred costs of €1,581,995 in relation to the development of software programmes as at the end of June 2026 and had other ongoing obligations in relation to pension and payroll.

The court was told that the company, which employs 47 full-time workers, was highly dependent on grants from the Department of Agriculture, Food and the Marine (DAFM) and Sport Ireland which, alone, had funded the company to the tune of €2.1 million for 2026.

Mr Walsh, the examiner, in written evidence presented to Judge Ferriter on Friday, stated that on Wednesday last, he had prepared a third report, covering the period from October 5th, 2026 to October 28th, 2026, for the court. The report stated that “based on my examination of the affairs of the Company to date and subject to the Court extending the period of protection, I continue to agree with the Independent Expert’s opinion that the Company has a reasonable prospect of survival.”

Department support

With regard to departmental support, Mr Walsh’s report said: “I confirm that I have continued to engage with Sport Ireland since issuing my second report and this engagement has been positive. I confirm that agreement has now been reached for Sport Ireland to release funds to the Company in instalments, subject to my having an oversight role in relation to the utilisation of the funds by the Company during the protection period.

“The total funding, under the contract in place, for the remainder of the year is €526,250, with this total including the €160,199 expected to be received in the coming days. The ongoing support of Sport Ireland is positive in terms of the Company’s future prospects of survival.”

With regard to the DAFM Breeding Services contract, the report stated the following: “Since my second report, DAFM has confirmed approval, in principle, for the granting of the Successor Breeding Services Contract. Should the Court extend the period of protection, there will be a requirement for me to engage further with DAFM as the approval of the contract is subject to confirmation of certain matters regarding the proposals I may formulate. The execution of this contract is critical for the survival of the Company and, for the reasons set out in my first report, I believe the execution of the contract is also in the best interests of DAFM.”

Funding proposals

Mr Walsh’s report confirmed that equity investment would not be pursued, but that three proposals were received by the deadline after an advertisement for investors was placed in the Business Post. These proposals fall under the investment categories of debt finance and/or the sale and leaseback of the HSI’s HorseSource platform.

“The parties include individuals with significant experience in the equestrian sector and individuals with extensive business experience,” the report said. “I confirm, following receipt of the proposals, that I carried out a detailed assessment of each proposal against 17 key criteria. I am satisfied that, on the basis of one or more of the three proposals, I would be in a position to formulate proposals. Should the Court extend the period of protection, it would be my intention to engage with various key stakeholders, including DAFM, regarding the key conditions that need to be met. It would also be my intention to formally identify a preferred party during the week commencing November 2nd.”

Cost cutting and liabilities

The report also confirmed that “annual cost savings to the Company in the amount of approximately €300,000 will arise as a result of the seven voluntary redundancies... as the remainder of the collective redundancy process is ongoing and due to the commercial sensitivity of the ongoing process of reducing other costs, I have not set out specific details in this report.”

With regard to liabilities, the report states: “I included in my first report details of pre-petition liabilities that I deemed necessary for the survival of the Company and sought approval for the Company to discharge these liabilities. By Order of the Court dated September 14th, the pre-petition liabilities in the amount of €406,331.09 were approved for payment. The Company has discharged payments in the amount of €235,649 to date, leaving €170,682 outstanding.”

Litigation

Mr Walsh’s report confirmed that legal proceedings brought by WSI Studbook Development Ireland Limited t/a Warmblood Studbook of Ireland against the Company and others had been settled as of October 29th, subject to a successful examinership. He said that having regard to the settlement agreement and the progress made to date on the funding options for the Scheme, he believed that the Company, and the whole or any part of its undertaking, continued to have a reasonable prospect of survival as a going concern, subject to the Scheme being approved at the meetings required under the Act and confirmed by the Court.

Judge Ferriter granted a further 30-day extension to facilitate Mr Walsh’s examinership.