This article first appeared in Volume 17, Issue 4 of International Corporate Rescue and is reprinted with the permission of Chase Cambria Publishing.
The CIGA’s effect on market practice and attitudes will no doubt take months, if not years, fully to form. The UK Restructuring, Turnaround and Insolvency team have considered the key elements of the reforms, focusing on the measures designed to save companies in immediate crisis rather than the new restructuring plan, and ask whether they will have the desired effect.
Our article covers:-
- The legislative process itself
- Wrongful trading
- Statutory demands and winding up petitions
- The new moritorium
- Ipso facto
As our article outlines, the provisions of the Act are complex and the reforms could have significant impact on companies in distress and their creditors, particularly landlords, suppliers, financial services providers and pension schemes. We will shortly be launching a series of short, informative webcasts focussing on a number of the key aspects to provide further understanding of the implications of the Act and how it may affect your business.
The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2021