Accountancy giant calls for more options for struggling small firms

ACCOUNTANCY and tax consultancy giant Grant Thornton has called for more options — outside of examinership, liquidation and receivership — for small firms in need of court protection while they attempt to overcome financial difficulties.

Michael McAteer of Grant Thornton’s Dublin office said that no middle ground exists for smaller companies, for whom the examinership route can be both legally demanding and cost intensive.

The request is currently with the Company Law Review Group, although any official ruling is not expected in the near-term. One possible alternative is the process of “credit voluntary arrangement”, popular in the British market. This is arranged outside of the courts and, as a result, tends to be more cost-effective.