Insolvency lawyer warns of ‘disaster’ if firms reject Covid-19 wage subsidies

Arthur Cox partner says fears over trading while insolvent are ‘without foundation’

   Women wearing face masks on an almost deserted Henry Street in Dublin city centre. Photograph: Brian Lawless/PA Wire

Women wearing face masks on an almost deserted Henry Street in Dublin city centre. Photograph: Brian Lawless/PA Wire

The head of insolvency at one of Ireland’s top corporate law firms has warned that recent criticisms of the State’s scheme to pay 70 per cent of workers’ wages through the sCovid-19 crisis are “without foundation” and risk “social disaster”.

Willie Day, head of the restructuring and insolvency practice in Arthur Cox, says anyone who advises SMEs not to sign up to the wage subsidy scheme and lay off staff instead will carry a “heavy responsibility”.

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