The Companies (Rescue Process for Small and Micro Companies) Act 2021 was commenced yesterday (7 December).
The act provides for a dedicated rescue framework for small and micro companies – the Small Company Administrative Rescue Process.
The rescue process is modelled on Ireland’s existing rescue framework, examinership. It seeks to mirror key elements of examinership in an administrative context, thereby reducing court oversight resulting in efficiencies and lower comparable costs, said Robert Troy (Minister of State for Trade Promotion, Digital and Company Regulation).
The rescue process has limited court involvement where creditors are engaged in the process and positively disposed to a rescue plan.
The minister has described it as a simplified and effective process that will give small and micro companies a genuine opportunity to restructure and continue to trade.
He encouraged viable businesses experiencing temporary difficulties to consider whether the rescue process was suitable for them.
Further information about the process can be found on the Department of Enterprise, Trade and Employment’s website at enterprise.gov.ie/rescueprocess.