The Minister for Trade Promotion, Digital and Company Regulation has brought into effect the Companies (Rescue Process for Small and Micro Companies) Act 2021, better known as “SCARP”.

As discussed previously by Hayes, the legislation sets out a statutory restructuring process, mirroring the Examinership process, which facilitates the rescue and restructuring of smaller companies (turnover of less than €12,000,000 and less than 50 employees) through the formulation of a Rescue Plan by a company appointed Process Advisor, without requiring Court approval. 

SCARP now gives more control to owner/directors in deciding whether to seek the assistance of a Process Advisor to restructure their companies’ financial commitments and to re-set the business on a surer footing.

For further information in relation to SCARP, or alternative corporate restructuring mechanisms, please get in touch with your usual Hayes contact.

Additional Resources:

• Department of Enterprise, Trade and Employment: Minister Troy announces the commencement of dedicated rescue process for small companies – link
• Hayes solicitors LLP: Small Company Rescue Proposals Published by Government – link