Over 700 jobs saved through SME examinership in 2015 – index
The total number of jobs saved through SME examinership in Ireland so far this year was 703, with 331 of these saved in the past three months, according to the Hughes Blake SME Examinership Index.
Transaero Engineering and Odessa Club and Restaurant were among those which made it through the process in 2015.
The lower-cost more accessible version of examinership offered in the Circuit Court (as opposed to the High Court, where it was traditionally exclusively available) now represents a majority of examinerships for the first time.
“We would all prefer to think that the rising tides we are seeing in the Irish economy have lifted all boats. But the fact is that many SMEs have been unable to benefit from the upturn because of legacy debts,” said Neil Hughes, managing partner at Hughes Blake.
“The Central Bank has pointed to €22.6bn in impaired SME debt, and while we are seeing welcome steps being taken to address the mortgage arrears crisis, the plight of the heavily indebted SME has remained largely under the radar.
“The examinership process has played a role in addressing the issue with more than 300 jobs saved in the last three months alone. However, many more jobs are lost each quarter through receivership and liquidation.
“The recent Clerys controversy and loss of jobs has starkly illustrated the risks many businesses face where their secured loan has been sold on to a private equity fund that has no long term interests in Ireland.”
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