Debt restructuring for SMEs

Deputy Ann Phelan has welcomed the move by the Government to make it easier and cheaper for small and medium-sized companies to restructure their debts.

Deputy Ann Phelan has welcomed the move by the Government to make it easier and cheaper for small and medium-sized companies to restructure their debts.

Companies that employ fewer than 50 people and have a turnover of up to €8.8 million will be now able to apply directly to the Circuit Court, rather than the more expensive High Court. The Circuit Court will then appoint an examiner to restructure the company’s debts – a cheaper, easier and quicker route.

“In practice this will mean that more businesses will be able to survive their difficulties, which will result in more jobs being saved, and hopefully more jobs will be created in the long run,” said Deputy Phelan.

The Government is due to amend the Companies Acts to enable this change, which is scheduled for publication before the end of the year, and it is expected to be enacted in the Dáil after that.

Small and medium-sized businesses account for about one-third of people in the Irish workforce.