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?

The European Union (Preventative Restructuring) Regulations 2022 (the “Restructuring Regulations”) were introduced on 27 July 2022 with immediate effect.

You can read our overview of the regulations, specifically the changes they impose on the examinership process and a short overview of the changes imposed on the Companies Act 2014, here.

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.

I spoke on This Week on RTE Radio 1 about the same topic in the Summer of 2021. I took the view then that the pandemic-induced “zombie economy” would likely result in mass business failures when it finally ended. I did not know at the time that Government subsidies, including the Employment Wage Subsidy Scheme (EWSS) would continue for another twelve months and have only just come to an end.