Examinership “Lite”
Overview
Examinership differs from liquidation/receivership in that the aim is to save businesses by restructuring existing debts.
The cost of the current examinership framework can be prohibitive for small businesses. In particular, legal costs associated with the existing High Court process can be difficult to manage for small businesses.
Examinership “Lite” Legislation
- Recently, the government has proposed legislation to facilitate a low-cost “examinership lite” model for small businesses.
- Under the “examinership lite” legislation the process will be dealt with via the Circuit Courts. This is expected to reduce the cost of legal fees by as much as 30%.
- The “examinership lite” legislation will be restricted to businesses who meet 2 of the following 3 criteria;
- Turnover less than €8,800k
- Gross Assets less than €4,400k
- Less than 50 employees