Call for Proposals to Rescue Irish Small Businesses to Focus on Those with Viable Futures

New proposals to rescue Irish small businesses in the wake of the Covid-19 crisis must focus on those with viable futures, a leading insolvency practitioner has warned, the Irish Times reported. The Company Law Review Group (CLRG) has been seeking views on proposals for a scheme to rescue financially-troubled small businesses that avoids the need for court hearings but, like examinership, gives the enterprise temporary protection from creditors. The scheme will become a fixed part of Irish insolvency law but is expected to play a key role in aiding businesses grappling with liabilities they are likely to face as the pandemic passes and the Government’s financial supports are withdrawn. David Van Dessel, partner, financial advisory at accountants Deloitte, which has made a submission on the proposals to the CLRG, warned at the weekend that candidates for the scheme “must be viable businesses” with a reasonable prospect of survival. “And they should only be allowed access the process within a certain period of time,” he said, adding that this would remove the temptation for some businesses to use the system repeatedly. As a further safeguard against this, Mr. Van Dessel said that the companies who so use the system should be obliged to report this to the Office of the Director of Corporate Enforcement. Read more.
Location