The Government wants to hear from the owners of small and micro businesses about the design of a solution for such companies facing potential collapse without some intervention and restructuring.
The new framework will be modelled on the examinership process.
It will be tailored to the needs of micro businesses employing fewer than 10 and small companies with a work force of not more than 50 and a turnover of €12m a year.
It is envisaged that the new process will reduce the associated costs and regulatory burden for ease of access to a rescue mechamism for small companies while also maintaining appropriate safeguards for creditors.
Robert Troy, the Minister for Trade Promotion, Digital and Company Regulation, is launching a public consultation on this proposed Summary Rescue process today.
The Minister said the consultation is an important phase in the development of the Summary Rescue Process.
"The issue of company rescue has become ever more urgent as companies struggle with the continued impact of Covid-19," Robert Troy said.
He said that while examinership is internationally recognised and works well in its current form, the associated costs are beyond the reach of small and micro enterprises and act as a barrier to access.
"This must be addressed as smaller businesses continue to struggle with the impact of the pandemic on their liquidity," he stated.
Small and micro enterprises account for the majority of companies in Ireland and support somewhere in the region of 788,000 jobs.
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"I know that small local businesses like newsagents, hairdressers and cafés will play an integral role in our country's economic recovery following this pandemic. Supporting their viability remains a key priority for Government," Mr Troy added.
Robert Troy said the new scheme will support 98% of companies that fall into the micro and small businesses category.
Mr Troy said the Government wants to preserve small and micro companies and the employment associated with them.
He explained that the scheme will be mirrored on the examinership process but will be a stand alone model.
Speaking on Morning Ireland, he said the public consultation process is being launched today and this will continue until March 5.
He added that a general scheme should be developed by the end of March and he hoped that legislation can be implemented before the Summer recess.
