Government Publishes Scheme For Dedicated Restructuring Framework For Small Companies

The Department of Enterprise, Trade and Employment has published the outline of proposed legislation for a dedicated rescue and restructuring framework for insolvent or potentially insolvent small and micro companies – see here.

The proposed framework, the "Small Company Administrative Rescue Process" or SCARP, follows from a report by the Company Law Review Group published last year (see here). It is modelled on the existing examinership process but is intended to be more accessible and cost-efficient for smaller companies.