Scott Murray takes helm of R3 Northern Ireland as insolvencies rise

Scott Murray, managing director at Keenan CF, has been appointed chair of R3 Northern Ireland, succeeding Ian Leonard of Interpath Advisory, who led the committee for the past two and a half years. A licensed insolvency practitioner with extensive experience handling complex restructurings, Scott takes on the role at a time when insolvency levels in Northern Ireland are climbing and businesses continue to grapple with economic pressures. In this interview, he discusses his priorities for the committee, the challenges facing practitioners in the region, and how R3 ensures Northern Ireland’s voice is heard in national policy discussions.

1. Congratulations on your appointment as R3 Northern Ireland chair. What are your priorities for the committee during your term?

Thank you, I’m really honoured to be stepping into the role as R3 Northern Ireland (NI) chair. Northern Ireland is a relatively small and well connected business community which I believe is one of our key strengths. My priority is to build on that and bring people together to strengthen relationships right across the profession.

I also want to raise awareness on the expertise available within R3 membership – the real, practical work that our professionals do every day to rescue businesses preserve jobs and return money to creditors.

2. You succeed Ian Leonard, who led the committee for the past two and a half years. How do you plan to build on the work already done while bringing your own focus to the role?

Ian has led the local insolvency community with a lot of energy and thankfully is staying on the NI Committee! Ian organised some really engaging events focusing on technical matters as well as softer skills training like communication techniques and understanding mindset that we all need to work successfully within our teams. I hope to be able to leverage on Ian’s experience and put on some positive and engaging events that members find helpful and relevant.

3. R3’s regional committees play an important role in representing practitioners locally. How does the Northern Ireland committee help ensure the region’s perspectives are reflected in national policy discussions?

Insolvency legislation in Northern Ireland is devolved, but historically it has largely mirrored England & Wales - albeit with a bit of a time lag. Because of this, maintaining strong relationships with R3 nationally is very important.

Ian Leonard will sit on the R3 National Committee ensuring Northern Ireland has a clear voice in national conversations. We also have representation on the R3 Technical Committee which plays an important role in discussing technical issues and shaping the future of our profession.

4. Northern Ireland has seen a rise in insolvency cases in recent years. What factors are driving that increase, and what trends are you seeing across sectors?

Several factors are contributing but in my view much of it stems back to the protections put in place at the time of the Covid-19 pandemic. Those measures significantly reduced insolvency numbers across the UK but the recovery was a lot quicker in England & Wales than it has been in Northern Ireland. The requirement in Northern Ireland for creditors to obtain a court judgement before then being able to petition the court for an insolvency process has meant the recovery back to pre Covid-19 levels has been slower in our region. However, with continued inflationary cost pressures we’re now seeing a steady and sustained rise in cases across multiple sectors, particularly hospitality, retail, manufacturing and construction.  

5. Given Northern Ireland’s unique economic position and cross-border links with the Republic of Ireland, are there particular restructuring or insolvency challenges that practitioners here face compared with other parts of the UK?

Yes, before Brexit insolvency proceedings were automatically recognised on both sides of the border, which made cross-border cases relatively straightforward. Post-Brexit that automatic recognition no longer applies resulting in more complex processes and several practitioners have already sought recognition from the courts to deal with assets or debts in the other jurisdiction.

One of my aims as Chair is to work more closely with our colleagues in Restructuring and Insolvency Ireland in the Republic of Ireland. Greater collaboration and clarity around cross-border procedures will benefit practitioners and stakeholders on both sides of the border.

6. Looking ahead, what legislative or regulatory developments would you most like to see to support the insolvency profession and improve outcomes for businesses and creditors? 

The ways in which businesses operate and communicate is rapidly evolving and insolvency is no different. There are various measures to modernise our profession which are working their way through the NI Assembly, and we hope these will be given approval soon. Modernising the framework will allow insolvency practitioners to run cases more efficiently and communicate more effectively with creditors which will lead to better transparency and outcomes.

7. At a time when insolvency practitioners are increasingly involved earlier in corporate distress situations, how is the role of the profession evolving?

Early engagement is critical for a viable business to survive. The earlier a business seeks advice, the wider the range of options available to restructure and put the business back onto a more sustainable financial footing.

R3 members work hard to provide realistic, practical solutions that create fair outcomes for all stakeholders. Increasingly, the role of our members is not just about managing formal procedures but adding value through early stage advisory work and helping to steer businesses through periods of challenge.

8. Finally, what does success look like for you and the committee by the end of your term as chair?

Success for me would be leaving the local profession in an even stronger position and better connected. I want members to feel engaged, supported and showcase the amazing talent we have within the local community. Given the ongoing economic landscape, insolvency and restructuring professionals will continue to play an important role and I want to ensure that role is clearly understood and valued.