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The “Debt Respite Scheme” Regulations: More Delay for UK Landlords

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

UK Government Consults With Landlords and Tenants on Potential Options for Dealing With Rent Arrears

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

Pre-Pack Sales to Connected Parties – FAQs (UK)

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

Updated: UK Business Viability Guide – understanding director risks and challenges

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

UK Insolvency Protection Laws Extended – Where Are We Now?

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

The Coronavirus Test: Indirect ‘financial effect’ of coronavirus could be sufficient to defeat a winding up petition (UK)

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

Pre-Pack Administrations: How Do Administrators Evaluate the Evaluator? (UK)

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

UK Government Consultation- Restoring Trust in Audit and Corporate Governance- A Directors’ Duties and Insolvency Perspective

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

Do the draft UK Pre-Pack Regulations address industry concerns?

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

UK Spring Budget 2021 – The Long Road to Recovery: Taxation

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

How does an English administrator obtain recognition of their appointment in an EU member state?

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

Does a failure to give notice to a prior QFCH invalidate UK administrator appointments?

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

Pensions Schemes Act – Why should UK insolvency practitioners be concerned?

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

Guide for UK Corporates: Assessing Business Viability and Director Risk

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
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