The Companies (Rescue Process for Small and Micro Companies) Bill 2021 passed all legislative stages of the Oireachtas on Tuesday, 13 July 2021. The Bill was signed into law on Thursday 22 July.

The legislation provides for the SCARP, which is similar to the existing examinership framework, but seeks to make the restructuring process quicker, easier and cheaper.

As previously reported in tax.point, the legislation includes provisions for the exclusion of State creditors, such as the Revenue Commissioners and the Department of Social Protection, by way of opting out on specific legislator grounds, such as the company having poor history of compliance.

Minister for Enterprise, Trade and Employment, Robert Troy TD, noted in Dáil debates on the Bill that, “The Revenue Commissioners are excludable creditors under the Personal Insolvency Act 2012 and have opted in to over 90% of cases where they are in a position to quantify the debts owed. The Revenue Commissioners have committed to being similarly constructive participants under the process provided for by the Bill.”

More information on the Bill is available on the on the Oireachtas website and in the press release issued by the Department of Enterprise, Trade and Employment on the successful passage of the legislation.