Brendan O’Donoghue, Restructuring and Insolvency Partner with RBK has welcomed the passing of the Companies (Rescue Process for Small and Micro Companies) Bill 2021 through all legislative stages in both Houses of the Oireachtas this week and is likely to become enacted into law during the Autumn.
Once enacted, small businesses that are experiencing financial difficulty will be able to avail of the Small Company Rescue Process (previously known as known as the Small Company Administrative Rescue Process or SCARP), which will be similar to the existing examinership framework, but aims to make the restructuring process more accessible, expedient and cost effective.
Commenting, Brendan O’Donoghue said: “This new legislation is a welcome boost for Small and Micro Companies as a new dedicated rescue framework becomes available to them. If a small business finds itself in a situation where it is unable to deal with the level of accumulated debt, but is otherwise viable, the directors of the company will be able to initiate this new simplified process, led by a process advisor (insolvency practitioner) without the necessity of a court application to restructure and if successful continue to trade."
At RBK, we operate a dedicated Corporate Recovery Helpline (T: 01 644 0103 E:
If you would like to discuss the Small Company Rescue Process, our lines are open Monday to Friday from 9 am to 5.30 pm and on Saturday from 10 am to 1 pm.
