Archive for June 2020
Corporate Insolvency and Governance Act Explained
In the weeks ahead, the Government will attempt to stimulate Britain’s flagging economy with the introduction of the Corporate Insolvency and Governance Act. The Act, which recently came into law, proposes an extensive shake-up of the insolvency regime. But exactly how will these changes affect business owners? Well, that depends if your primary focus is:…
Read MoreZombie companies in danger from Covid-19
In an attempt to limit the economic fallout from Covid-19, the Government is rushing through parliament the Corporate Insolvency and Governance Act. The new legislation, which recently came into force, proposes a raft of debtor-friendly measures aimed at curbing company collapses. If we’re to kick-start the economy and stave off recession it’s essential that trade…
Read MoreStat demands and winding-up petitions post Covid-19
The Government’s decision to suspend the filing of Statutory Demands and Winding-up Petitions is a huge blow for creditors seeking to collect payment of outstanding debts. As a result of the Corporate Insolvency and Governance Act, a creditor’s only debt enforcement remedies are through the county court via either a bailiff or a third-party debt…
Read MorePost-Covid-19 termination clauses
One of the most controversial proposals in the Corporate Insolvency and Governance Act is the suspension of termination clauses. Medium and large creditors are prevented from using the terms of their contract to stop the supply of ‘essential’ goods and services to a company in a formal insolvency procedure. However, the suspension of termination clauses…
Read MorePros and cons of the moratorium procedure
Under the provisions of the Corporate Insolvency and Governance Act 2020, struggling companies can be placed into a new statutory insolvency procedure. But what are the pros and cons of the moratorium? The moratorium provides up to 40 business days of protection from creditors. This should be ample time to secure additional investment and remodel…
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