The Companies (Rescue Process for Small and Micro Companies) Act 2021 was commenced on 7 December. The Companies (Rescue Process for Small and Micro Companies) Act 2021 inserts a new Part 10A into the Companies Act 2014 to provide for a dedicated rescue process for small and micro companies, the “Small Companies 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.
The rescue process has limited court involvement where creditors are engaged in the process and positively disposed to a rescue plan.
While examinership is internationally recognised and successful in its own right, the associated costs mean it may be beyond the reach of small and micro enterprises. This new rescue process is designed to make rescue and restructuring more accessible and affordable to fundamentally viable companies experiencing temporary difficulties.
Further information about the process can be found on the Department of Enterprise, Trade and Employment’s website.