Crowe Ireland has noted a significant number of distressed companies seeking advice as to whether the Small Company Administrative Rescue Process (Scarp) could be used to reduce their liabilities and resize their balance sheet, so the restructured operation can become a going concern again.
“We adopt an approach where we will quickly establish from consultation with Revenue whether it will participate in the Scarp, which writes down a significant portion of the Revenue liabilities, or whether Revenue wishes to opt out,” Declan Hanly, director of corporate restructuring at the firm, explains.
“We find that if Revenue indicates that it will not be part of the process, company directors and shareholders quickly decide that…
