Small Companies Administrative Rescue Process

11th June 2024  |   Guidelines

The Companies (Rescue Process for Small and Micro Companies) Act 2021, which commenced on 8 December 2021, provides for a dedicated rescue process for small and micro companies, namely the 'Small Companies Administrative Rescue Process (SCARP)'.

SCARP allows fundamentally viable companies experiencing temporary financial problems to restructure with the agreement of creditors. It is initiated by the directors of the company concerned and has limited court involvement where creditors are actively engaged  and are positively disposed to a rescue plan. The process mirrors elements of examinership but with a simplified administrative  process making it potentially both quicker and cheaper.

SCARP is providing an effective lifeline to viable small and micro companies that would otherwise go into liquidation, thus maintaining jobs and maximising total value to creditors.

Eligibility criteria

To avail of SCARP, a company must meet the following criteria:

1. The company must be a small or micro company as defined by the Companies Act 2014.
   A small or micro company is one which meets two of the following three conditions:
   (a) No more than 50 employees
   (b) Turnover must not exceed €15 million
   (c) Balance sheet must not exceed €7.5 million
2. The company is, or is likely to be, unable to pay its debts.
3. The company must not be in liquidation.
4. The company must not have appointed an examiner or process adviser in the previous 5 years.
5. If a receiver has been appointed to the company, the company is eligible only if that receiver has been appointed for a period of less than 3 working days.

In order to avail of SCARP a company must also be fundamentally viable and capable of trading its way out of its current difficulties. Assessing the viability of the company is the first determination which the Process Adviser is required to make following their initial appointment by the Directors of the company.

An information handbook providing clear and accessible information on SCARP is provided below. Further information on the legislative framework is also provided.

Próiseas Tarrthála Riaracháin le haghaidh Cuideachtaí Beaga

Forálann Acht na gCuideachtaí (An Próiseas Tarrthála le haghaidh Cuideachtaí Beaga agus Micreachuideachtaí), 2021, a thosaigh an 8 Nollaig 2021, do phróiseas tarrthála tiomnaithe do chuideachtaí beaga agus do mhicreachuideachtaí, is é sin ‘Próiseas Tarrthála Riaracháin le haghaidh Cuideachtaí Beaga (SCARP/PTRCB)’.

Ligeann SCARP/PTRCB do chuideachtaí atá inmharthana go bunúsach a bhfuil fadhbanna airgeadais sealadacha acu athstruchtúrú a dhéanamh le comhaontú na gcreidiúnaithe. Is iad stiúrthóirí na cuideachta lena mbaineann a thionscnaíonn é agus bíonn baint theoranta aige leis an gcúirt sa chás go mbíonn ról gníomhach ag creidiúnaithe agus go mbíonn siad sásta le plean tarrthála. Is ionann an próiseas agus gnéithe den scrúdaitheoireacht ach le próiseas riaracháin simplithe a d’fhéadfadh é a dhéanamh níos gasta agus níos saoire araon.

Soláthraíonn SCARP/PTRCB líne tharrthála éifeachtach do chuideachtaí beaga agus do mhicreachuideachtaí inmharthana a rachadh faoi leachtú murach sin, rud a chiallaíonn go gcoinnítear poist agus go ndéantar luach iomlán do chreidiúnaithe a uasmhéadú.

Critéir incháilitheachta

Chun leas a bhaint as SCARP/PTRCB, ní mór do chuideachta na critéir seo a leanas a chomhlíonadh:

1. Ní mór don chuideachta a bheith ina cuideachta bheag nó ina micreachuideachta mar atá sainmhínithe in Acht na gCuideachtaí 2014. Is éard is cuideachta bheag nó micreachuideachta ann ná ceann a chomhlíonann dhá cheann de na trí choinníoll seo a leanas:
   a) Níl níos mó ná 50 fostaí ag an gcuideachta
   b) Ní féidir lena láimhdeachas a bheith os cionn €15 mhilliún
   c) Ní féidir leis an gclár comhardaithe a bheith os cionn €7.5 mhilliún
2. Níl an chuideachta, nó is dócha nach mbeidh an chuideachta, in ann a fiacha a íoc.
3. Ní fhéadfaidh an chuideachta a bheith faoi leachtú.
4. Níor cheart go mbeadh scrúdaitheoir nó comhairleoir próisis ceaptha ag an gcuideachta sna 5 bliana roimhe sin.
5. Má tá glacadóir ceaptha don chuideachta, níl an chuideachta incháilithe ach amháin má tá an glacadóir sin ceaptha ar feadh tréimhse níos lú ná 3 lá oibre.

Chun leas a bhaint as SCARP/PTRCB, ní mór do chuideachta a bheith inmharthana go bunúsach freisin agus a bheith in ann na deacrachtaí atá aici faoi láthair a réiteach trí thrádáil. Is é measúnú a dhéanamh ar inmharthanacht na cuideachta an chéad chinneadh a chaithfidh an Comhairleoir Próisis a dhéanamh nuair a cheapann Stiúrthóirí na cuideachta ar dtús iad.

Tá lámhleabhar faisnéise a thugann eolas soiléir agus inrochtana ar SCARP/PTRCB ar fáil thíos. Cuirtear tuilleadh eolais ar fáil faoin gcreat reachtach freisin. 

Documents

Small Company Administrative Rescue Process »

 pdf (2241 KB)

Information Handbook

Topics: Company Law