Latest news with #debtrescue
Irish Times
07-07-2025
- Business
- Irish Times
Scarp cases up 15% in 2025 amid ‘economic uncertainty'
The number of small and micro businesses looking to restructure their debts through the small business rescue scheme has jumped by 15 per cent so far this year, with the hospitality sector responsible for the biggest proportion of cases, Azets Ireland has said. Unveiled in 2021 as a more cost-effective alternative for smaller businesses to the examinership process, the Small Companies Administrative Rescue Process (Scarp) facilitates simplified out-of-court debt restructuring for viable companies. A new analysis of the regime by Azets Ireland, formerly Baker Tilly Ireland, found that some 1,314 jobs have been saved through the process since 2021. Almost three-quarters of the 100 businesses that have gone through the small business rescue regime have survived, just over half of which were based in Dublin, the restructuring and corporate advisory firm said on Tuesday. READ MORE In 2025, 15 Scarp cases have commenced this year, up 15 per cent on the same period last year, Azets said. How the wealthy are buying up land to avoid inheritance tax Listen | 22:03 Hospitality accounted for 20 per cent of new Scarp cases this year, followed by construction and the alcohol-producing sectors, which accounted for 13 per cent each. 'In a period of heightened economic uncertainty, Ireland's SMEs are navigating challenging trading conditions, from rising costs to elevated energy costs and supply chain issues,' said Dessie Morrow, partner in advisory and restructuring at Azets Ireland. 'In sectors which are heavily export dependent, the unknown position on tariffs and how that might recalibrate the trading relationship has caused considerable uncertainty and a slowdown in key decision making. 'This can have a major impact on firms from production slowdowns to pauses in capital expenditure and is particularly challenging for firms already struggling with the high cost of doing business.' Azets Ireland, which has been involved in 33 per cent of all successful Scarp cases since 2021, wants the Government to look at ways of making the process more attractive for qualifying firms. At the moment, the Revenue Commissioners can exclude tax debts from the scheme if it has concerns about the company, if it has a history of noncompliance. Among other things, Azets said the Government should consider removing this opt-out at the start of the process, which it said is deterring some businesses from applying for the scheme. 'Notwithstanding the Revenue's positive engagement with the scheme, the ability to opt out is a deterrent to some business owners considering the process,' Mr Morrow said, adding that removing some of the administrative burden on businesses would make it a more viable option for under-pressure firms. 'By reducing the burden on businesses and enhancing the flexibility of Scarp, we can support the future viability of more small businesses that may need to restructure in the months ahead,' he said.
South China Morning Post
14-05-2025
- Business
- South China Morning Post
Hong Kong's Han Academy aims to repay parents after ‘white knight' steps in
A debt-ridden independent school in Hong Kong has said it aimed to settle outstanding payments to parents by the end of the next year with the help of a 'white knight'. Advertisement Xu Li, the founding supervisor of Han Academy, said on social media on Tuesday that a financial rescuer had stepped in and that the institution was actively pursuing debt restructuring with four repayment instalments being made to debtors by April 29. She added that parents of all former students would have their capital levy repaid by the end of this year, while all first-hand capital note certificates would be redeemed by the end of 2026. She expressed gratitude to all those who had supported the school. 'We will continue to run the school with our hearts, and give back to society with quality education,' Xu said. Advertisement Founded in 2017, Han Academy in Wong Chuk Hang is a private school operated by the Happy Life Education Foundation. According to the Education Bureau, annual tuition fees range from HK$198,000 (US$25,400) to HK$218,000 for students in Years One to 13.
