Poland’s Parliament is expected to pass legislation on Wednesday (3 June) that will offer expedited and simplified restructuring procedures for debtors. This will be the fourth in a series of laws in response to the COVID-19 pandemic – known as Shield Laws, but the first to add a new type of restructuring procedure.
For more information and to read about the potential implications of Shield Law 4.0 click here.
As different countries respond in different ways to meet the challenges placed on businesses and the economy. 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.
We have updated our guide to include further changes to insolvency laws in China, Japan and the United Arab Emirates.
We have updated our European & Middle Eastern Government Financial Support guide, which sets out what financial support businesses in different jurisdictions could access to help manage financial distress caused by Covid-19. We have updated this with new details for the Czech Republic, Italy, Spain, UK and Qatar.
To access the updated guide – click here.
Different countries frame the exact description of the role of directors of a company in different terms. One feature is common to all – the obligation not to continue trading if a company is insolvent. Again, the detailed implications of doing so vary from one jurisdiction to another.
We have updated our consolidated guide to cover changes to the laws in England & Wales, Belgium and Italy.
To access the updated guide click here.
The ability of suppliers to terminate contracts when a customer becomes insolvent is to be curtailed by the Government under plans published in the Corporate Insolvency and Governance Bill (the “Bill”).
The Bill contains a suite of measures designed to help businesses both during and after the COVID-19 pandemic, several of which have been under consultation for some time. This blog will focus on the measures affecting termination clauses and how they apply. A broader overview of the measures introduced by the Bill can be found here. Continue Reading
On 20 May 2020, the UK Government introduced the Corporate Insolvency and Governance Bill (the “Bill”) to the House of Commons. The Bill introduces a new debtor-in-possession moratorium to give companies breathing space in order to try to rescue the company as a going concern. The Bill is currently only in draft form and therefore amendments may be made. It is anticipated that the legislation will come into force by the end of June 2020.
This blog (the first in a series of blogs about this new measure) outlines the key provisions of the moratorium and how it will work. Continue Reading
On 10 May 2020, Prime Minister Boris Johnson informed businesses in England that, as part of the Government’s three-phase strategy for lifting the Coronavirus lockdown, employees that cannot work from home can, and should return to work from Wednesday 13 May 2020.
This note from our Data Privacy and Cybersecurity team aims to provide practical advice on some of the key data protection compliance measures that should be factored into a business’s post-lockdown “back-to-work” plan, together with a quick-reference checklist.
Following the UK government publishing the Corporate Insolvency and Governance Bill which sets out temporary changes to the UK Insolvency laws on wrongful trading (see here for further discussion) we have updated our guide on directors’ duties.
German Chancellor Angela Merkel and French President Emmanuel Macron presented a joint Franco-German proposal on the European recovery from the coronavirus crisis on 18 May 2020. The main aim is to set up a €500 billion Recovery Fund at EU level for solidarity and growth, managed by the EU Commission. The funds are to be distributed in as grants among the EU Member States that have been most severely impacted by the COVID-19 pandemic, with payments made from the EU’s overall budget.
The proposal allows the European Commission to finance economic recovery support by raising funds on the capital markets on behalf of the EU, ‘subject to a legal basis that fully respects the EU Treaty and budgetary framework as well as the rights of national parliaments of the Member State’. It will be a complementary derogation, anchored in the EU’s Own Resources Decision, with a clearly defined scope and time limit and linked to a binding repayment schedule beyond the current Multiannual Financial Framework, via the EU budget. This €500 billion would be on top of the 2021-2027 EU budget, which will be worth close to €1 trillion in total. This large grant injection is also intended to address concerns about the inability of certain EU member countries to support their industries through the crisis, whilst bigger countries can offer massive financial assistance for national major industries. Continue Reading
The UK government has released its recovery strategy dealing with how the UK might move from lockdown to the “ new normal” enabling some businesses to re-open. The ability to begin rejuvenating businesses that have been mothballed for the past couple of months is good news but corporates should proceed with caution as they take steps to revamp the workplace. Those businesses that are still restricted from opening (largely those in hospitality and leisure) will have consider whether the business can survive an extended period of lockdown or whether it is appropriate to consider restructuring the business.
Our quick guide sets out the key considerations for all businesses thinking about restructure, rejuvenate or mothball options as we unlock.
Our quick guide also provides access to a number of tools, guides and blogs to support our clients with all their financial health needs whether they be focused on workforce, supply chain, cashflow, Directors Duties or ongoing contractual obligations.
