SCARP is a new Bill that was published on 25 June, 2021, that will help small and micro companies that are struggling. The main objective of SCARP is to save a company and to save peoples jobs in the process. This new bill is expected to be enacted later this year, and when it’s enacted we will inform you of same.
Briefly to explain SCARP is an alternative solution to that of Examinership, that includes some aspects of Personal Insolvency. The Government felt that Examinership process was too costly for small businesses. This alternative is a brand new process specifically for small/micro businesses. The business must be unable to pay debts as they fall due and they must not be in liquidation in order to be eligible to try this rescue plan for their business.
The company will then choose a Personal Insolvency Practitioner to act as a Process Advisor who will gather your information to see if your company can potentially survive, if they feel the company can survive they will prepare your rescue plan. R Hendy & Co has two Personal Insolvency Practitioners that will gladly assist in keeping your small business afloat.
We look forward to the enactment of this bill in the coming months and will keep you posted.