This Working Life: How Scarp can offer a lifeline to ailing smaller business

The Small Company Administrative Rescue Process allows firms to restructure their balance sheets in a quick and cost-efficient way

Scarp is not a panacea to resolve a company’s financial difficulties, but it can afford viable companies a framework for restructuring

The Small Company Administrative Rescue Process, or Scarp for short, is a formal restructuring process that came into effect last December.

Due to the economic challenges posed by the pandemic, and the unprecedented impact it was having on businesses, the government sought to establish a stand-alone process outside existing restructuring and insolvency frameworks to rescue small companies.

Scarp is specifically targeted at SMEs, and allows companies to restructure their balance sheet in a timely and ...