Managing Director Ken Fennell was recently quoted in a piece in The Currency analysing the increasing usage of Scarp. His comments are listed below:
It’s worth noting that 50 per cent of all Scarps to date commenced at the end of October/November so take up of the process is building momentum. It will be interesting to see if this trend continues in 2023 but I expect it will.
In terms of the industry sectors where Scarp is being utilised, it appears to have a relatively even spread, although retail and hospitality make up nearly 50 per cent. Another interesting consequence of the Scarp process can be seen in the low uptake of the examinership process. There were just ten examinerships in 2022 and it is likely that the Scarp process is seen as a more viable alternative.
Finally, one of the initial concerns surrounding the process was Revenue’s ability to opt out of the process by excluding debt but it appears to date Revenue have been supportive of Scarp whereby companies are up to date with tax filings.
Read the article in full here: Scarp's salvage mission, Nestlé’s $518m battle with Revenue and tax breaks for hospitality: Rewinding the week that was - The Currency : The Currency
