Louise O'Reilly
Question:26. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to expedite examinership lite for SMEs and microbusinesses (details supplied). [29959/20]
View answerTuesday, 13 October 2020
Questions (26)
Written answers
I am currently considering the issue of corporate rescue, or 'examinership lite', for SMEs and microbusinesses in conjunction with the Company Law Review Group (CLRG). Membership of the CLRG is broad and representative of key stakeholders in the area such as ISME, IBEC, ICTU, the Revenue Commissioners, insolvency and legal practitioners and regulators, making it uniquely well positioned to provide an informed view on the matter. I expect the CLRG to report to me by the end of this month.
I know that the cost of examinership is prohibitive for smaller businesses. I have asked the CLRG to conduct its review in the context of reducing the costs and administrative burden associated with rescue so as to make it more accessible to SMEs under the following terms of reference:
1. Examine and make recommendation as to how the statutory scheme of arrangement provisions of the Companies Act 2014 might be adapted to provide a rescue framework for SMEs.
2. Examine and make recommendation as to ways in which key elements of the examinership process, including a stay on enforcement proceedings and a cross-class cram-down, might be incorporated into a rescue framework for SMEs.
3. Other EU Member States provide for voluntary restructuring processes, with a strong emphasis on creditor agreement. Examine and make recommendation as to whether such a process is desirable in an Irish context with particular emphasis on the French framework (mandate ad hoc procedure).
4. Any other recommendations the CLRG consider appropriate.
It is important to note that the impact of any amendments in respect of corporate rescue extend far beyond a company and its directors. Consideration must also be given to the implications of any such changes for creditors, who are often other companies, and employees. There is a delicate balance to be struck between the competing needs of affected stakeholders and I will consider the CLRG's Report carefully in this regard.
I remain committed to exploring ways in which we can support SMEs while also ensuring the appropriate safeguards remain in place for creditors and employees.