In summary, and in edition to other measures announced by the Government, no business will be forced out of their premises if they miss a payment in the next three months (currently up to 30 June 2020 but there will be an option for the Government to extend this). This measure applies to all commercial … Continue Reading
This note explains which businesses must close and considers how the restrictions on movement of people impact on essential businesses. For insolvency practitioners, the decision to close non-essential businesses will impact on what options are available if a business is in distress and has to go into an insolvency process. It will also impact on … Continue Reading
The Prime Minister announced tonight that all shops selling non-essential goods in the UK are to close immediately and except in specific circumstance people will not be allowed to leave their homes – all social gatherings and social events are to stop. This measure will be reviewed in three weeks. The important questions that these … Continue Reading
It is widely reported in the press that the UK is only two weeks behind Italy in terms of the mortality rates from coronavirus. We have seen efforts from the Government ramp up, as they try to curb the spread of the virus, with hospitality and leisure businesses being told to close on Friday. However … Continue Reading
Further to our blog yesterday this alert sets out further details about the financial measures announced by the UK Chancellor to support businesses and the UK economy.… Continue Reading
We have updated our guide setting out what funding is available to UK businesses, what the eligibility criteria is, how to apply for the funding and when it will be available. See here.… Continue Reading
As we close the week which has seen the Government and the Bank of England publish details of their financial support package for business, the business community awaits the formal launch of both the Coronovirus Business Interruption Loan Scheme (CBILS) and the Covid Corporate Financing Facility (CCFF) next week.… Continue Reading
How do you keep capital working? This article considers the financial health of a business in the face of the threats to working capital, providing practical tips that apply to all businesses, in all sectors in all jurisdictions.… Continue Reading
We are in unprecedented times but the announcement this evening by the UK Chancellor included unprecedented financial support aimed at easing cash flow, supporting jobs and providing further support to UK businesses. The two key announcements were that (1) the UK Government will pay 80% of employees wages; and (2) the Coronavirus Business Interruption loan … Continue Reading
UK government advice and the escalation of Coronavirus crisis have meant that many hospitality and leisure operators, including hotels, restaurants, pubs, some retailers and visitor attractions, are making difficult decisions to plan for reduced activity and reduced demand for several weeks, including in some cases, temporary suspension of activities and/or closure of premises/venues. There are … Continue Reading
The German Federal Ministry of Justice and Consumer Protection is preparing new legislation suspending the obligation to file for insolvency in order to protect companies that encounter financial difficulties due to the coronavirus crisis (see here). According to section 15a(1) of the German Insolvency Code (Insolenzordnung), managing directors or management board members of legal entities … Continue Reading
Due to its constitutional and legal system, Germany is different from a number of other countries around the world. Measures fighting the spread of COVID-19 in Germany cannot be taken at the central government level in Berlin (Bundesregierung) but have to be taken by the governments of the 16 states (Landesregierungen), which constitute the Federal … Continue Reading
We are seeing business distress in all countries as a consequence of Covid-19. This note sets out practical steps that a business in the Czech Republic can take to mitigate risk and address the threat of insolvency.… Continue Reading
Globally, most nations affected by Covid-19 have restrictions in place that significantly impact business operations. In some cases requiring businesses to temporarily shut the doors whilst balancing that against the need to maintain essential services. But how can a business identify whether it is an essential service? This note explores that question.… Continue Reading
Given the current pressure all businesses face dealing with the effect of Covid-19, it is important that directors understand what their duties are in respect of insolvent companies or companies that are at risk of heading towards insolvency. In this blog we briefly remind directors what their duties are, the potential claims that could be … Continue Reading
To assist UK Businesses in understanding what financial support packages are now available we have produced a helpful guide summarising those. This gives an overview of the package, the level of funding available, eligibility, how to apply and when it will be available.… Continue Reading
The UK Chancellor confirmed additional financial support would be provided to UK businesses. Our blog yesterday set out an overview of the support available. This alert provides further details about that package of measures. Details about the Coronavirus Business Interruption Scheme, can be found here and we are working with our clients to arrange support … Continue Reading
The measures are designed to support cash flow and inject liquidity into the economy. They might be a lifeline for many companies, but directors must also consider the implications of further borrowing – the lifeline may only offer temporary relief for an already struggling business.… Continue Reading
Squire Patton Boggs is working hard to support clients to navigate legal issues and manage risk posed by Covid-19. We have created an online tool for businesses to self assess their contingency arrangements. The self-assessment tool will take a maximum of 15 minutes to complete. Within 24 hours, you will be sent a summary, which will map … Continue Reading
Yesterday, following a meeting of the Cobra committee the Government announced that the UK has moved into the “delay” phase of its plan aimed at tackling the coronavirus outbreak. For businesses the main impact will be operational given that anyone who shows certain symptoms has been advised to self-isolate for 7 days, regardless of whether … Continue Reading
The Chancellor announced what he described a comprehensive economic response to the coronavirus. Recognising that there may be up to 20% of the workforce off work at any time and that coronavirus will have a significant albeit temporary impact, the following measures aimed at easing cash flow pressure were announced:… Continue Reading
Perhaps not surprising, given the recent change of pace with Covid-19 and in the face of both the Chancellor and Bank of England announcing measures to support the UK economy, the proposals to re-instate Crown preference have been delayed until 1 December 2020 BUT extended to Northern Ireland. Our previous blog discussed the issues that … Continue Reading
In this blog we consider: What are the immediate challenges facing businesses as a consequence of the impact of Covid-19? What measures have been announced in the UK to support consumers and SMEs during this period of economic disruption and what others are expected? How to protect your business? … Continue Reading
The English Court of Appeal in Chapelgate Credit Opportunity Master Fund Ltd v Money and others [2020] EWCA Civ 246 confirmed last month that the Arkin rule (which provides for a cap of the funding costs payable by a non-party) is not binding. In this blog we consider what impact that might have on insolvency … Continue Reading
