30th June 2020
The Corporate Insolvency and Governance Bill has become law after its progress was accelerated through the House of Commons and House of Lords.
Since being published at the end of May, 117 amendments have been made to 240 pages of legislation, leading to the passing of the Corporate Insolvency & Governance Act 2020 on 25 June.
Key provisions of the act include:
While many UK insolvency professionals may claim they already had an effective set of tools to work with, these reforms are expected to better enable some corporate businesses to deal with the impact of COVID-19 while making some key changes to the rights of creditors of all sorts.
Some trade creditors who have supply contracts will be surprised that their contractual right to suspend supplies or terminate contracts where their customer enters insolvency proceedings is seriously restricted.
Whether you are a director, secured or unsecured creditor, supplier, shareholder or guarantor of a business that may be facing or may face financial strain, this new legislation will affect your options. Thrings has already started working with clients to enable them to face changes to their business that arise and, where necessary, adapt their plans to reflect this new legislation.
Note: Nothing in this article constitutes legal advice and we are not liable for any reliance on the information provided. This is a rapidly changing subject, and whilst correct at the time of writing, circumstances may have changed since publication.