Program offers streamlined support to micro and small businesses facing financial difficulties
The Ministry of Law (MinLaw) has extended the application period for the Simplified Insolvency Programme (SIP) by 24 months, now set to close on January 28, 2026. Initially introduced in October 2020 in response to the financial strains from the COVID-19 pandemic, the program was designed to assist micro and small companies (MSCs) facing significant financial challenges. The SIP provides a simpler, faster, and lower-cost process for businesses to restructure their debts or wind up their operations.
The SIP includes two key processes: a simplified debt restructuring program for viable but distressed companies, and a simplified winding-up program for companies that are deemed unviable. This extension follows two previous extensions in 2021 and 2022 and is part of MinLaw’s plan to eventually make simplified insolvency processes a permanent feature of the insolvency framework.
As of October 31, 2023, 44 out of 57 companies that applied for the program had been successfully wound up. This expedited process typically takes about nine months, compared to the three to four years required for a standard liquidation. By offering a cost-effective solution, the SIP helps businesses address their financial difficulties while minimizing the negative impact on their owners and stakeholders.
