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Corporate Insolvency and Governance Bill introduced to Parliament

Corporate Insolvency and Governance Bill introduced to Parliament

On 20 May 2020 the Government introduced the eagerly anticipated Corporate Governance and Insolvency Bill to Parliament. The Bill aims to provide greater protection for businesses during and following the COVID-19 crisis. If the bill is enacted in its current form the bill would offer businesses breathing space to consider options for rescue whilst being protected, which would offer businesses the greatest chance of survival.   The bill offers:   A short-term ban on the service of statutory demands and making of winding up orders. Statutory demands against companies between 1 March 2020 and 30 June 2020 cannot be used as the basis of a winding up petition. Any creditor asking the court to make a winding-up order must show that the company’s inability to pay its debts was not caused by COVID-19. A temporary amendment to the rules on director liability for wrongful trading. It will be assumed that Directors are not responsible for losses incurred whilst… Read more


Protective measures for commercial tenants

Protective measures for commercial tenants

On 23rd April the Business Secretary Alok Sharma set out measures aimed to protect high street shops and other companies against aggressive rent collection. The use of statutory demands made between 1st March 2020 and 30th June 2020 and winding up petitions presented from 27th April 2020 and 30th June… Read more


Ministers consider further changes to the Insolvency Rules

Ministers consider further changes to the Insolvency Rules

Further radical changes to the insolvency rules are being considered by ministers.   Schemes of Arrangement appear to be set for a radical overhaul allowing vulture funds (distressed debt investors) to overrule high-ranking creditors, such as traditional banks, if judges can be persuaded that it was in the best interests… Read more


Temporary Insolvency Practice Direction comes into force

Temporary Insolvency Practice Direction comes into force

The Temporary Insolvency Practice Direction (“TIPD”) came into force on 6th April 2020 and will remain in force until 1st October 2020. The purpose of the TIPD is to assist the court during the COVID-19 pandemic, trying to remove the need for parties to attend court in person and to make provisions… Read more


Business Secretary announces supportive measures

Business Secretary announces supportive measures

The Business Secretary Alok Sharma has announced new insolvency measures to support businesses under pressure as a result of the coronavirus outbreak. The Government will amend insolvency law to give companies breathing space and keep trading while they explore options for rescue and temporarily suspending wrongful trading provisions retrospectively from… Read more


COVID-19 Update

COVID-19 Update

We will continue to operate as normal during the Coronavirus pandemic . This virus spread represents uncharted territory for many – we continue to keep the situation under review, setting our operational policies and activities in line with government and medical advice. Rest assured that we will continue to support… Read more


Insolvency appointments on the rise

Insolvency appointments on the rise

The UK Insolvency Service has just released its quarterly statistics for October- December 2019 which show that insolvency appointments in liquidations and administrations in 2019 were at levels higher than for five years. Construction and support services are the areas of the highest number of appointments, followed by the wholesale, food and… Read more


Two companies liquidated after investigation into fraudulent investor scheme

Two companies liquidated after investigation into fraudulent investor scheme

On 7 October 2019 Dionysus Design Services Ltd and Gem Tobin Ltd were wound up in the public interest. The High Court heard that the two companies had been investigated by the Insolvency Service as a result of its earlier inquiries into associated companies Halifax Mannin Ltd and Hey Design… Read more


Prison term given to bankrupt concealing property

Prison term given to bankrupt concealing property

The Insolvency Service has reported that a bankrupt who fraudulenty disposed of property has received a four-month prison sentence.   It was found that the individual was aware of his debt issues however he instructed a firm of solicitors to transfer his share in a property (estimated to have been… Read more


Debenhams CVA upheld

Debenhams CVA upheld

A challenge by a group of landlords to the voluntary arrangement of the Debenhams retail group has been dismissed by Mr Justice Norris. The landlords claimed that they were unfairly prejudiced and that there was a material irregularity in the CVA. It was also claimed that the CVA went beyond… Read more


Cryptocurrencies in Insolvencies

Cryptocurrencies in Insolvencies

The UK does not currently regulate cryptocurrencies and they are not recognised as legal tender or currency. Due to the wide drafting of the Insolvency Act, cryptocurrencies are included as an asset of the estate which can lead to several issues for insolvency practitioners (“IPs”). Identifying cryptocurrencies is difficult and… Read more


Draft Finance Bill 2019-20

Draft Finance Bill 2019-20

HMRC’s reinstatement as a preferential creditor in relation to certain debts in corporate insolvencies was included in the draft Finance Bill 2019-20, published on the 11th July 2019. From the 6th April 2020, HMRC will rank behind fixed charge holders and ordinary preferential creditors (employees). The preferential status will only… Read more