SCARP (Small Company Administrative Rescue Process)
A fast-track rescue solution for small Irish businesses
SCARP is a streamlined restructuring process designed to help viable small companies in financial difficulty avoid liquidation. Introduced under the Companies (Rescue Process for Small and Micro Companies) Act 2021, SCARP offers an efficient and lower-cost alternative to examinership — tailored specifically for SMEs.
At Friel Stafford, we support directors, business owners and advisers through the SCARP process with clear guidance, practical support, and a focus on preserving value and protecting jobs.
Who is SCARP for?
SCARP is available to companies that meet two of the following three criteria:
- Turnover under €15 million
- Balance sheet total under €7.5 million
- Fewer than 50 employees
To qualify, companies must be insolvent (or likely to become insolvent) but capable of survival if a rescue plan is put in place.
Key features of SCARP
The key features of SCARP include:
- Creditor protection from legal action during the rescue period
- No court approval required unless a creditor objects to the plan
- Appointed Process Adviser (similar to an examiner) prepares the rescue plan
- Reduced cost and timeframe (typically concluded in 6–8 weeks)
- Binding rescue plan if approved by a simple majority in value of creditors
How SCARP works
1. Eligibility review
We assess your company’s suitability for SCARP
2. Appointment of Process Adviser
A qualified insolvency practitioner is appointed
3. Preparation of rescue plan
Including proposed debt restructuring, payment terms and equity adjustments if required
4. Creditor meetings and approval
Creditors vote on the plan (no need for court approval if accepted)
5. Plan implementation
If approved, the plan is binding and the company continues to trade
Benefits of SCARP
- Keeps your business trading while resolving creditor issues
- Preserves employment and contracts
- Avoids reputational damage associated with liquidation
- Less disruptive and more cost-effective than examinership
- Reduces director exposure to legal proceedings
Friel Stafford
How we can help
Experienced Insolvency and Restructuring Specialists
As experienced insolvency and restructuring specialists, we support companies through every stage of SCARP — from initial eligibility checks through to process management and negotiation with creditors.
We combine insolvency expertise with practical business, tax, and legal knowledge to give you the best chance of a successful recovery.
Is your small business under pressure but fundamentally viable?
SCARP could help you restructure quickly without going into liquidation.
Contact us to see if SCARP is right for your company.
CONTACT US TODAY
+353 1 661 4066