Professional services firm Azets Ireland has announced that a rescue plan it devised for the company behind Dublin-based restaurant, Brasserie Sixty6 has been approved by creditors.
This follows the withdrawal of an objection in the Circuit Court.
Azets Ireland was first appointed as a process adviser to Home RBVR, the company behind Brasserie Sixty6, on the 5th August 2022 under the Small Companies Administration Process (SCARP).
75 Jobs Saved
The company required restructuring in order to be able to continue to trade as it had amassed significant debt to creditors, including the Revenue Commissioners, as a result of availing of the opportunity to warehouse debt over the course of the Covid-19 pandemic.
With the support of all creditors, including the Revenue Commissioners, Azets Ireland has secured court approval for a rescue scheme.
Azets Ireland said over 75 jobs have been saved in Brasserie Sixty6 as well as Rustic Stone, which successfully emerged from SCARP last year.
'Long And Difficult Process'
“Although a long and difficult process, the plan will help the company to restructure its finances and address warehoused debt," said Neil Hughes, CEO of Azets Ireland.
“It is a victory for a small business that was grappling with solvency issues in the wake of the pandemic but fundamentally is commercially viable."
"Although government supports introduced during the pandemic were of crucial assistance at a time when trading wasn’t possible, many businesses in the hospitality sector continued to accrue interest on warehoused debt as well as arrears."
SCARPs
Since coming into effect in December 2021, just 44 companies have undertaken SCARPs, of which Azets have been appointed to 18.
"With over 60,000 businesses faced with having to pay back Revenue close to €2 billion in warehoused debt in May next year, it is an economic reality that many may need to restructure by either accessing SCARP or entering examinership," said Hughes.
"The court outcome this week should give hope to small, struggling businesses as it demonstrates that there are viable solutions out there for them.”
