HORSE Sport Ireland’s examinership petition, opened in court on Monday, laid out the difficulties that have resulted in the national governing body for equestrian sport being insolvent.

The petition states that HSI has incurred significant legal costs connected to various sets of proceedings. It states that the most “significant claim, particularly as it impacts the Company’s solvency” was brought by Studbook Development Ireland Limited, which trades as Warmblood Studbook of Ireland (WSI), against HSI, the Irish Horse Board, and other named individuals connected to the organisations.

In the petition, HSI said it was “the subject of an indemnity or contribution claim from other Defendants, though that element of the claim was resolved by way of settlement agreement. However, the Company was unable to discharge the commitments made in the said settlement agreement”.

The petition explained: “As a result, on July 31st, 2026, the Company (HSI) received a 21-day statutory demand from Pinsent Masons Ireland LLP acting on behalf of the second-named defendant, the Irish Horse Board Co-Operative Society, in the sum of €122,600 pursuant to Section 570 of the Act. The Company is unable to discharge this debt”.

The Irish Field understands that the crux of this issue dates back to the formation of HSI, when the Irish Horse Board (IHB) was provided with an insurance indemnity in relation to its activities. It is understood that, due in part to this obligation and following legal advice, HSI and the IHB agreed to combine their defence in the case in June. HSI agreed to pay a settlement to the IHB and €25,000 of this was paid before an agreement for the remainder could not be reached.

Claims

In the petition, HSI said it had historically traded around breakeven. The most recent audited accounts for 2024 showed a surplus of €112,696. Due to recent costs arising in legal and professional advisory areas, among others, HSI is no longer able to pay its debts.

The petition shows 2026 legal fees in the registration department at €308,758 compared to €10,186 last year, while the legal fees in the sport department have increased to €40,031 from €1,704.

The petition outlines that HSI’s 2026 expenditures to date are approximately €960,000 higher that the same point in 2025. This, it says, is due to incurred ICT (Information and Communication Technology) costs, professional fees, consultancy and staff costs.

HSI has paid out €17,750.82 in connection with a defamation case which, they understand, can be recouped under their insurance policy. There have also been proceedings alleging breach of contract, a dispute surrounding the failure of a stallion to pass a veterinary check and a claim for recovery of tax withheld by HSI in line with a compromise agreement. A total of €16,012.50 has been paid out for these claims.

HSI said it had preserved its position in relation to a potential insurance recovery claim against Lloyd’s Insurance Company through a standstill agreement. The current standstill period expires on September 26th, 2026.

Who are the creditors?

As of June 30th, 2026, HSI estimated it owed the Revenue Commissioners a total of €130,271, which may change following engagement with the examiner. HSI said as of June 30th, a sum of €71,638 was owed in relation to pension payments and accrued holiday pay. This would be an ongoing liability.

Also as of June 30th, HSI said it had a liability for deferred income relating to a Sport Ireland grant investment of €867,785.

Independent expert

The independent expert Cormac Mohan of AAB Ireland said if HSI went into liquidation, its redundancies would cost the state €500,000. Mohan noted the cost of legal and professional fees had risen along with payroll costs.

He concluded that HSI had a reasonable prospect of survival, but this included cutting costs by €500,000. To do so, he said, HSI must reduce costs of external legal, HR, advisory and consultancy spending.

Order of security costs

In July, the High Court ruled that the Warmblood Studbook of Ireland (WSI) must provide security for each of the defendants’ costs in an action it brought against HSI and some of its officers and directors alleging discrimination and anti-competitive conduct.

In the first set of proceedings, the plaintiff (WSI) alleged anti-competitive conduct and unlawful interference with economic interests against the defendants, and sought declarations that certain officers and directors sanctioned these breaches of Irish and EU competition law. The second set of proceedings alleged that the eligibility requirements set by the defendant (HSI) for certain competitions were discriminatory to Irish Warmblood horses.

HSI applied for security for costs under section 52 of the Companies Act 2014, which is intended to protect defendants should a corporate plaintiff be unable to pay the defendants’ costs if its claims fail. Under the principles from Quinn Insurance Ltd vs PricewaterhouseCoopers, security will typically be ordered unless the plaintiff can prove special circumstances justifying a different result.

The plaintiff’s objections to providing security in this case failed. WSI argued that its financial difficulties resulted from HSI’s wrongdoing, an argument the court rejected.

The court also rejected the argument that the proceedings were taken in the wider public interest of the sport horse industry, instead ruling that they are a private commercial dispute. The court granted HSI security for costs, with the amount yet to be determined. It is estimated it would cost HSI €925,000 to defend the case.