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
With the announcement of a further national lockdown the wind has somewhat been taken out of the sails of businesses hoping to get back on their feet in early 2021, that is following the good news about the COVID-19 vaccine. It has been a bumpy ride for many businesses over the last few months with … Continue Reading
In the third (and final) of our blog series on recent CVA cases, in Rhino Enterprises Properties Ltd & Anor [2020] EWHC 2370 (Ch), the High Court gave permission for misfeasance proceedings to be brought against two former joint administrators. This was despite an approved Company Voluntary Arrangement (“CVA”) containing a clause releasing the joint … Continue Reading
Increasing pressures placed on those operating in the retail and hospitality sectors as a result of COVID-19, means there is likely to be an increasing use of CVAs in these sectors. The intention would be to help support and restructure businesses in distress, but could retailers use a CVA as a mechanism to re-write the … Continue Reading
The COVID-19 pandemic has exacerbated the problems faced by high-street retailers. Store closures during lockdown, changing consumer behaviour and the resultant loss of turnover and profits have caused many businesses to seek to reduce their rent payments. Company Voluntary Arrangements (“CVAs”) have become fashionable tools for trying to secure such rent reductions. In this blog, … Continue Reading
For derivative transactions that are relocated from the United Kingdom to the EEA or newly concluded there, in many cases new master agreements must be concluded between the involved parties. The total volume of European derivatives trading (measured by open gross notional amount) amounted to around €681 trillion at the end of 2019 as announced … Continue Reading
In this article, Devinder Singh and James Morgan QC consider the status of notices served under the Commercial Rent Arrears Recovery scheme, in particular the timing, security and priority position of such notices. Given that landlords are not able to serve valid CRAR notices until 31 March 2021 (see our blog here), we expect there … Continue Reading
The UK Government has announced that the temporary prohibition on forfeiture will be extended when the current prohibition comes to an end at the end of the year. The restriction, that prevents commercial landlords from forfeiting a lease for non-payment, will now be in place until 31 March 2021. … Continue Reading
The temporary restrictions that prohibit winding up proceedings where non-payment is COVID-19 related, and restrict petitions based on unsatisfied statutory demands, that would have come to an end on 31 December 2020 have been extended until 31 March 2021.… Continue Reading
The case of Arlington Infrastructure Ltd (In Administration) v Woolrych [2020] EWHC 3123 (Ch) is a cautionary reminder to qualifying floating charge holders (and their advisors) to review the terms of all security documents, before seeking to appoint an administrator. In this case, failure by junior chargeholders to obtain consent from senior chargeholders (as required … Continue Reading
On 26 November 2020, The Corporate Insolvency and Governance Act 2020 (Coronavirus) (Suspension of Liability for Wrongful Trading and Extension of the Relevant Period) Regulations 2020 (the “Regulations”) came into force. The Regulations have exactly the same impact as the suspension of liability for wrongful trading that was brought into force by the Corporate Insolvency … Continue Reading
The Government has issued what we might hope will be the final piece of the jigsaw on the latest extension to the Coronavirus Job Retention Scheme (CJRS) – the Treasury Direction (TD4). TD4 sets out the law that will govern the extension of the CJRS (at least until 31 January 2021) and formally withdraws the … Continue Reading
The biggest challenge for most UK businesses in the current environment is assessing viability. Will it survive another lockdown? Can it recover from the last? Each business is unique but there are common challenges to all. One of the most difficult challenges at the moment is ensuring that when making decisions about the business that … Continue Reading
Late on 10 November 2020, the UK Government published detailed guidance on the extension to the Coronavirus Job Retention Scheme (CJRS). As expected, the guidance largely reflects what was contained in the policy paper and is broadly the same as the last CJRS guidance. Our employment colleagues have produced an updated alert and quick guide … Continue Reading
As you will have seen in recent announcements, the government is now: Extending the Coronavirus Job Retention Scheme (CJRS) until 31 March 2021. Postponing the Job Support Scheme (JSS), possibly indefinitely. Scrapping the Job Retention Bonus (JRB), but this will apparently be replaced by another “retention incentive at the appropriate time”. Businesses that have spent … Continue Reading
Following the UK Prime Minister’s announcement on Saturday night that England will enter a second national lockdown on Thursday 5 November, HM Treasury has confirmed that the Coronavirus Job Retention Scheme (CJRS) that was due to close at the end of October will be extended for a month (for now!). The introduction of the Job … Continue Reading
Following then Government announcement regarding further support for businesses during COVID-19, our employment colleagues have produced a quick guide outlining the key features of the Job Support Scheme (Open and Closed) and the Job Retention Bonus Scheme.… Continue Reading
Earlier in the year, we published a blog regarding the impact of the moratorium introduced by the Corporate Insolvency and Governance Act 2020. In particular, we flagged that the moratorium may result in a significant loss of control for secured lenders and qualified floating charge holders (QFCH). In a recent case, Re Tokenhouse VB Limited … Continue Reading
On 8 October 2020, the UK government published a report reviewing voluntary measures introduced in 2015 to improve the transparency of pre-pack sales in administration. There is no legal definition of a pre-pack, although the term is used to explain the sale of a insolvent business by an administrator back to existing management (usually on … Continue Reading
On Friday, the UK Chancellor announced additional support for UK businesses that will be legally required to shut for a period over the winter months as part of local or national restrictions. At this stage, we only have HMRC’s factsheet to go on, but it seems the support will be provided by way of an … Continue Reading
Our latest updated guide setting out the financial support measures available to businesses across Europe and the Middle East is now available here.… Continue Reading
While much of the focus of the insolvency and restructuring world has (rightly and understandably) been on the fundamental changes introduced under the Corporate Insolvency and Governance Act 2020, it is worth remembering that there have been major tax changes too. The Finance Act 2020 introduced new rules making directors, shadow directors and certain … Continue Reading
With UK government support packages coming to an end shortly, our financial health road map sets out key dates for UK businesses that will help identify milestones that may impact a company’s cash flow and should be factored into decisions about the future of a business. The road map has been updated to identify any … Continue Reading
