Corporate Insolvency and Governance Bill - summary

Some of the main points of the Bill are:

•            a moratorium blocking legal action against a company to allow for breathing space while a rescue plan is sought. The moratorium is to be monitored by an Insolvency Practitioner.

•            measures to prevent suppliers from ceasing to supply businesses going through an insolvency or restructuring process.

•            new restructuring plans for viable companies in difficulty – with creditor or court approval.

•            temporary suspension of wrongful trading legislation.

•            removal of the threat of winding up petitions based on unpaid debts which are due to the pandemic.

Remember, this is not law yet – the Bill is due to be debated in the House of Commons in June.

Published May 28, 2020