On 4 March 2021, Banking & Payments Federation responded to the Department of Enterprise, Trade & Employment’s Public Consultation on Summary Rescue Procedures for Small Companies. The Consultation is to inform the General Scheme of a Bill which the Department is developing.
Robust restructuring processes typically contain some or all of the following elements:
- the granting of a stay or moratorium;
- support for new and interim financing;
- support for negotiation with creditors and, where necessary, equity holders, through the introduction of cram down provisions which might include cross class cram down provisions;
- a final approval of a restructuring agreement through an official body – in Ireland, the High Court or in some cases, the Circuit Court.
These elements are present in the examinership process and are regularly cited as being central to its success.
The Summary Rescue Process (SRP) allows a company to apply for a stay on proceedings and focuses on creditor negotiation and the introduction of cross class cram down provisions.
The purpose of the Consultation was to invite the input of stakeholders and BPFI members responded to the questions set out in the Consultation.
Please see BPFI’s response to the Consultation here.
If you have any questions, please contact, Bernice Evoy, Head of Legal by email at firstname.lastname@example.org.