STAYINformed – Insolvency Special
June 5, 2020
Keeping you up-to-date with the latest news and legal issues from the commercial team at Exchange Chambers during the Covid-19 lockdown.
In this week’s insolvency special, we have a series of articles from members of Exchange Chambers’ Restructuring and Insolvency team dedicated to The Corporate Insolvency and Governance Bill (‘CIGB’). First published by the UK Government on 20th May 2020, the Bill is aimed at helping companies that are struggling from the economic impacts of the coronavirus pandemic, whilst also allowing businesses to protect jobs, and directors during the economic recovery.
These articles consider the scope and effect of various reforms introduced by the Bill:
The Corporate Insolvency and Governance Bill
Carly Sandbach and Katherine Traynor consider the Corporate Insolvency and Governance Bill (‘CIGB’) first issued by the UK Government on 20th May 2020 aimed at helping companies that are struggling from the economic impacts of the coronavirus pandemic.
Temporary suspension of liability for wrongful trading
Anja Lansbergen-Mills examines the temporary suspension of liability for wrongful trading and considers the justification for the measures, their scope and effect, and certain issues to which legal professionals and insolvency practitioners must be alive when advising and acting upon the suspension.
Extension of various time periods for providing information to registrar
Commercial pupil Katherine Traynor considers the various extensions for providing information to registrar afforded by the Bill.
Temporary extension of period for a public company to file accounts
Katherine Traynor also provides a summary on the temporary extension of period for a public company to file accounts under the Bill.
The New Moratorium
Lisa Linklater and Jodie Wildridge discuss the New Moratorium, a major innovation in corporate insolvency in the CIGB. The objective of rescuing companies in financial difficulties is achieved by curtailing creditors’ rights. Does it strike a balance? How will it be received by businesses and insolvency practitioners?
Temporary restrictions on the presentation of winding up petitions
Commercial pupil Jodie Wildridge examines temporary restrictions on the presentation of winding up petitions and the making of winding up orders due to the COVID-19 pandemic.
Corporate Insolvency and Governance Bill: Prohibition on Termination Clauses
Lisa Feng discusses prohibition on termination clauses, one of the measures being introduced in the Bill to assist companies is a prohibition on termination clauses which are triggered on a party entering an insolvency process.
Corporate Governance Provisions of The Corporate Insolvency and Governance Bill (“The Bill”)
Mark Cawson QC looks at the provisions of the Bill that seek to deal with the difficulty of holding physical meetings of members of companies and filing certain documents during the Covid-19 pandemic.
Arrangements and reconstructions for companies in financial difficulty
Modelled on sections 895 to 901 of the Companies Act 2006 (the existing Part 26), the new provisions extend to financially distressed companies the opportunity to enter into arrangements or reconstructions with their creditors or members. David Mohyuddin QC explores this aspect of the Bill further.
Corporate Insolvency and Governance Bill completes passage through Commons
On Wednesday 3 June 2020, the Corporate Insolvency and Governance Bill completed all major stages in the House of Commons and passed to the House of Lords for its first reading. Duncan Hedar considers the unusually rapid passing of such an important Bill through the Commons stages.
Re: A Company (Injunction to restrain presentation of petition) [2020] EWHC 1406 (Ch) and the Corporate Insolvency and Governance Bill
Commercial pupil Jodie Wildridge considers the ex-parte hearing in Re: A Company (Injunction to restrain presentation of petition) [2020] EWHC 1406 (Ch) and the Corporate Insolvency and Governance Bill.
Click here to view the STAYINformed e-bulletin Insolvency Special (week commencing 1st May 2020).
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