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 Japan.
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, France, German and Qatar.
To access the updated guide – click here.
On 3 June 2020, the German Federal Government announced a €130bn fiscal package to help the German economy to recover from the impact of the COVID-19 pandemic. The aim of the package is in particular to strengthen broad consumption, incentivize private and public investments (particularly in green and digital technologies) and provide a boost to employee share programs for startups.
The economic recovery and crisis management package consists of four pillars: (1) strengthening economic recovery and the economic power of Germany; (2) softening economic and social issues; (3) strengthening states and municipalities; and (4) measures and support for young people and families. In addition, a future package is contemplated and in addition a European and international responsibility addressed. Overall, the three packages include 57 detailed measures. Some of the key measures of the three packages are as follows: Continue Reading
What is it?
A new form of restructuring plan (RP) which can be entered into with all creditors. It is found within the Corporate Insolvency and Governance Bill (Bill) and assuming it is enacted in its current form, it will sit next to schemes or arrangements in the Companies Act 2006 (rather than the Insolvency Act 1986) by way of a new Part 26A, ss895-901, and as with a scheme of arrangement the RP will seek to achieve an agreed compromise / arrangement between a company, its members and/or its creditors.
However the RP is only available where the company has encountered, or is likely to encounter, financial difficulties that are affecting, or will or may affect, its ability to carry on business as a going concern and the RP’s purpose is to eliminate, reduce, prevent or mitigate such financial difficulties.
As only six sections of the Companies Act cover the RP, the statutory material on this is relatively brief. Consequently the explanatory notes to the Bill make it clear that the intention is that the RP process will largely mirror Part 26 Schemes of arrangement save of course for where there are specific departures from it. It is expected that where the new legislation requires interpretation, existing case-law surrounding the Part 26 Schemes of Arrangement will be of significance. Continue Reading
As set out in the first blog in this series, the Corporate Insolvency and Governance Bill (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 first blog outlined how the moratorium will work. This blog will focus on the key provisions that secured lenders should be aware of and considers, in particular, the impact on qualifying floating charge holders (“QFCH”). Continue Reading
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
