This weeks announcement by Minister Robert Troy that the Government is set to put in place a long-promised process to allow troubled SMEs to restructure will be welcomed by many Irish companies. That they are to be put in place before the summer recess is especially heartening for the small and micro companies that comprise 98pc of Irish firms.
he need for this legislation was highlighted by the Company Law Review Group (CLRG) in 2012, and every government since has promised to deal with the issue. Unfortunately, the process as announced will not work for most troubled companies or their creditors.
Until now, the only widely used debt-restructuring option for companies was examinership. The CLRG said in 2012 that the examinership proces…
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