At a Glance: Summary of UK temporary insolvency and enforcement restrictions as a result of COVID-19 – with expiry dates

Dentons
Contact

Many permanent and temporary changes to insolvency laws have been made during the COVID-19 pandemic to help companies (and individuals) in financial distress. In particular the introduction of three key permanent measures: a new 20 business day moratorium (that can be extended) which will give companies a "payment holiday", impose restrictions on what the company and its directors may do, and limit what enforcement actions creditors may take during this time along the lines of the existing administration moratorium; a new restructuring plan that will bind both secured and unsecured creditors, and introduce a cross-class "cram-down" mechanism; and suppliers of a company in an insolvency procedure or under the protection of the company moratorium will not be able to rely on contractual terms to stop supply, terminate or vary contract terms/increase prices unless the supplier can prove (to the court) that it will suffer financial hardship if it does not take these steps.

Please see full publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dentons | Attorney Advertising

Written by:

Dentons
Contact
more
less

Dentons on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.