Oireachtas Joint and Select Committees
Wednesday, 8 May 2024
Joint Oireachtas Committee on Jobs, Enterprise and Innovation
Small Companies Administrative Rescue Process: Discussion
Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source
I would like to get some details. Could Ms O'Dea give us the sectors involved in the 62 cases, and the costs in terms of the completed process compared with, let us say, an examinership? Is it too early to know the survival rate of the 40 companies that have completed the process? Do we know how many, if any, were contested and had to go to court before they were confirmed? I would like to get those details to have an understanding of the process.
Revenue recovered roughly 25% of the debt. Is that the same as everyone else recovered or does Revenue get a better recovery than other creditors? Do we know that sort of detail in terms of how that works out?
What is the strategy in terms of the 11,000 companies that have warehoused debt but have not entered into any arrangement? I know there is engagement but is there a process involving insolvency practitioners for companies, whereby some of them would be supported or have engagement with someone who might see whether there are prospects for recovery? Is it just the case that they will go on to the 10% and it does not look too good after that?
It is striking that there is a fall-off in examinership as a share. That gives an indication that there was a gap. That was a notoriously expensive option. It does look like the Department has hit a spot. Like others, I just wonder about there being only 62 or 63 companies to date. Does that indicate there are barriers to engagement with this process for a lot more companies or that in some way they are put off? Perhaps there are not enough lower-cost accountants who are engaging and offering the service. Do we know whether it is just the very big four players that are involved or if the process is accessible?
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