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31 Mar 20201 minute read

Insolvency law changes to help business

ECAtoday
Insolvency law changes to help business

To help businesses cope with the impacts of the coronavirus pandemic, the UK’s Insolvency Framework is set to add new restructuring tools, including:

  • a moratorium for companies, giving respite from creditors seeking to enforce their debts for a period of time, whilst the company seeks a rescue or restructure
  • protection of their supplies, to enable them to continue trading during the moratorium
  • a new restructuring plan, binding creditors to that plan

The Government said it will also temporarily suspend wrongful trading provisions, to give company directors greater confidence to use their best endeavours to continue to trade during the pandemic, without the threat of personal liability should the company fall into insolvency.

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