A recentPwC reportfound that there has been a slight rise in companies availing of the Small Company Administrative Rescue Process (“SCARP”).

SCARP made up 6% of corporate insolvencies in Q2 2024, up from 3% in the previous quarter.

However, overall, the numbers availing of this insolvency option remain low, which is notable given that insolvencies generally are increasing.

Insolvency Trends

Many Irish businesses face the challenge of meeting warehoused debt. One option available is to address the debt via the Small Company Administrative Rescue Process (“SCARP”).

Government Schemes

During the Covid-19 pandemic, a lot of Irish companies took advantage of Government schemes, to include the Employment Wage Subsidy Scheme (“EWSS”), the Covid Restrictions Support Scheme (“CRSS”) and Debt Warehousing. PAYE, PRSI, USC, EWSS and CRSS overpayments were all warehoused.

What is Debt Warehousing?

On the 29th July 2022, the European Union (Preventive Restructuring) Regulations 2022 (the ‘Regulations’) were signed into law by the Minister for Enterprise, Trade and Employment.

On the 29th July 2022, the European Union (Preventive Restructuring) Regulations 2022 (the ‘Regulations’) were signed into law by the Minister for Enterprise, Trade and Employment.