The Companies (Rescue Process for Small and Micro Companies) Act 2021 providing for the Government’s rescue process for small and micro companies (SCARP) has now been commenced having been signed into law earlier this year.
The SCARP framework is modelled on examinership but is intended to be more accessible and cost-efficient for small companies because of the reduced role for the court.
We expect that SCARP will be widely availed of by small companies as an alternative to examinership as COVID-19 related financial supports are withdrawn by the Government.
For further information, access our July article setting out the key features of SCARP and our article considering the impact that SCARP might have on landlords. The Department of Enterprise, Trade and Employment has published a helpful booklet on SCARP which can be accessed here.