The new formal rescue process for small and medium sized companies, SCARP, is now formally a part of Irish law. The legislation underpinning the new rescue process was officially commenced on Tuesday 7 December 2021.
The new rescue process, which was designed to fill a perceived lacuna in Irish restructuring law, is hoped to be a more streamlined and less expensive rescue process that can be availed of by small and medium sized companies. Its introduction follows a report by the Company Law Review Group in October 2020 and the fast tracking of legislation this year which was passed by the Oireachtas in September. Of course, it remains to be seen how SCARP performs in practice but its introduction cements Ireland’s position as being at the forefront internationally in providing formal rescue processes under domestic legislation to small and medium sized companies in financial difficulties.
LK Shields’ Jill Callanan along with Brendan O Donoghue of RBK Chartered Accountants discussed and analysed this new rescue process which is available here. Further detail on the rescue process can also be found on the Insolvency Hub on the LKS website. To subscribe click here.
For further information please contact:
Jill Callanan (firstname.lastname@example.org)
Clare Dowling (email@example.com)
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