UK Corporate Insolvency and Governance Bill: Highlights

On Wednesday 20 May, the Government published the highly anticipated Corporate Insolvency and Governance Bill (the “CIGB”). It legislates for the landmark changes to the UK’s corporate insolvency regime and the temporary suspension of the statutory provisions on wrongful trading announced by the Business Secretary on 28 March 2020 (see Weil’s European Restructuring Watch update of 30 March 2020).

The CIGB, designed to give companies a “breathing space”, is being fast tracked and will introduce into law the following, some of which follow to a certain degree the proposals first announced by the Government in August 2018 (as discussed in Weil’s European Restructuring Watch update on 7 September 2018):

I. Moratorium: to provide a breathing space for eligible companies to seek the rescue of the company as a going concern -

II. Arrangements and reconstructions for companies in financial difficulty: the introduction of a new restructuring plan as an additional rescue process -

III. Temporary prohibitions of winding-up petitions -

IV. Temporary suspension of wrongful trading liability for directors -

V. Prohibition on enforcement of supplier insolvency termination clauses -

VI. Meetings and filings: the temporary extension of time periods and providing information to the companies registrar -

We shall release a detailed overview of the Bill within the coming days, but in the meantime we set out below a high level summary of the proposals.

Please see full Alert 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.

© Weil, Gotshal & Manges LLP | Attorney Advertising

Written by:

Weil, Gotshal & Manges LLP

Weil, Gotshal & Manges LLP 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.