From 4 May 2021 individuals will be able to apply for a moratorium that will provide a breathing space from creditor action. Our property litigation team have produced this alert considering the impact of the new regulations and what they mean for landlords. Whilst the regulation will primarily impact those involved in residential lettings, the … Continue Reading
The UK government has launched a consultation inviting views from stakeholders on options for dealing with rent debt when the existing prohibitions on forfeiture, CRAR proceedings and winding-up petitions end on 30 June 2021. Responses to the consultation can be made here and although participation is voluntary, completing the survey will ensure that the government’s decision as … Continue Reading
From 30 April 2021, an administrator will be unable to complete a sale of a substantial part of a company’s property to a connected person without either the approval of creditors or an an independent written option. Our new alert considers the impact of the new regulations in practice, which apply to both pre-packs and … Continue Reading
With the UK taking positive steps towards re-opening the economy, businesses will start to see the true impact that lockdown restrictions (and the lifting of those restrictions) have on supply and demand. The UK government has continued to support UK businesses including, most recently, extending the prohibition on winding up petitions and the forfeiture moratorium, … Continue Reading
The Corporate Insolvency and Governance Act 2020 introduced a number of temporary changes to UK insolvency laws last year. Those changes, together with other measures such as the moratorium on forfeiture proceedings have recently been extended, we assume, to avoid the perceived cliff edge of insolvencies that might follow if such measures are brought to … Continue Reading
Following the UK Government extending the restrictions on winding up petitions until 30 June 2021 it is useful to note two recent cases that have considered the coronavirus test that currently applies to winding up petitions. In the first case Newman v Templar Corp Ltd [2020] EWHC 3740 (Ch) heard before Christmas but only recently … Continue Reading
With fairly swift measure the UK House of Commons approved the ‘pre-pack regulations’ confirming that, with effect from 30 April 2021, before a pre-pack sale can complete creditor approval or an independent written report from an evaluator will be required. The detail about, the now mandatory referral process, can be found in our previous blogs. … Continue Reading
The Government has issued a consultation paper regarding statutory audits and financial reporting. The consultation makes proposals in relation to four areas, namely directors, auditors and audit firms, shareholders and the audit regulator. We have previously summarised the proposals impacting the purpose and scope of an audit. This post will focus upon the matters affecting … Continue Reading
HMRC expect all UK taxpayers to pay the tax they owe, in full and on time, whenever they are able to do so. However, in circumstances where a taxpayer is unable to meet its liability, HMRC are able to exercise a discretion to allow the taxpayer to pay tax after the due date, over an … Continue Reading
There has been a significant increase in the use of CVAs, in particular in the retail and hospitality sector over the last 12 to 24 months, largely impacting landlord creditors. A CVA proposal can often run to hundreds of pages, and understanding what it means, how it impacts creditors and whether the terms offer a … Continue Reading
The case of Newman v Templar Corp Ltd [2020] EWHC 3740 (Ch) came before the courts in December 2020 and provides a helpful example as to when a winding up petition can overcome the ‘coronavirus test’ set out in Schedule 10 of the Corporate Insolvency and Governance Act 2020 (“CIGA”). The judge also concluded that … Continue Reading
It is perhaps not unsurprising that the prohibition on landlords taking forfeiture action will be extended until 30 June 2021 given that the UK government has extended other support measures for UK businesses (such as the furlough scheme) and is keen to avoid the cliff edge of insolvencies that many fear could happen should support … Continue Reading
On 24 February 2021, the UK government published the draft bill for the Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021 (the “Regulations”), which, once in force, will require mandatory creditor approval or an evaluator report before an insolvency practitioner (“IP”) can dispose of the company’s property by a ‘pre-pack’. The Regulations are … Continue Reading
The UK Spring Budget Statement delivered by Chancellor of the Exchequer, Rishi Sunak, on Wednesday 3 March 2021, laid bare the scale of the economic damage done by COVID-19. The Chancellor’s focus was on initiating an investment-led recovery, to incentivise investment, productivity and growth and to build a new, innovative and “green”, UK economy. In … Continue Reading
In the final part of our predictions for 2021 for the UK insolvency market we look at pensions, the National Security and Investment Bill and cross border matters. The first and second part of this series of blogs is available here (part 1) and here (part 2).… Continue Reading
Following on from part 1 of our predictions for 2021 for the UK restructuring market part 2 looks at CVAs, directors duties and HMRC and insolvencies. We had hoped to cover off everything in 2 parts, but 2021 looks to be a busy year so we will publish the final part of this series next week.… Continue Reading
Since 31 December 2020 insolvency proceedings opened in England will no longer benefit from automatic recognition in an EU member state. Instead an application will need to be made for recognition in the relevant member state where there are cross border assets or an establishment. Our quick guide gives an overview of the recognition procedure … Continue Reading
The case of Re NMUL Realisations Limited (in administration) [2021] EWHC 94 (Ch) follows in the footsteps of the case of Re Tokenhouse VB Limited [2020] EWHC 3171 (Ch),where the Court considered whether a charge-holder’s failure to give notice of their intention to appoint administrators invalidates the appointment (see our previous blog here). The issue … Continue Reading
The Pensions Schemes Act received Royal Assent yesterday (11 February). For those involved in restructuring it is important to be aware that the Act introduces new offences, carrying hefty fines and the possibility of imprisonment that apply to “any person”. Given the wide scope of the drafting the new offences could capture directors, insolvency practitioners, … Continue Reading
At the start of 2020, we considered what changes the UK restructuring and insolvency market might expect to see during the year – however no one could sensibly have predicted the significant and far reaching impact of COVID-19. In part 1 of our blog, we look back at 2020 and look forward to what the … Continue Reading
Our guide sets out how different jurisdictions are changing their Insolvency Laws to help alleviate additional pressures placed on businesses as a consequence of cash flow pressures caused by COVID-19. This week’s updates include changes in Germany and Japan. Click here to see our updated guide.… Continue Reading
2021 remains challenging for many businesses, and uncertainties about the future make it imperative for UK businesses to identify and address potential risks to their business now. We have updated our Assessing Your Business Viability and Director Risk Guide to assist UK businesses with identifying those risk areas. Our guide covers cash flow considerations, financial … Continue Reading
As expected, the market access to the EU for UK financial services firms has changed post-Brexit. As of 1 January 2021, UK financial services firms that intend to do business in the EU can no longer rely on the EU Single Market to offer their services using the EU passporting system. Therefore, the implications of … Continue Reading
The Debt Respite Scheme (Breathing Space) comes into force on 4 May 2021. This allows individuals to obtain “breathing space” from creditors under certain circumstances. A breathing space can be obtained if: An individual cannot or is unlikely to be able to repay their debts and a debt adviser considers a breathing space appropriate – … Continue Reading
