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
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
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
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
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
French businesses face significant business disruption, as does any country faced with restrictions in place to curb movement of people because of Covid-19. In this blog we consider what the restrictions are in France and what help is on offer.… 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
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
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
The Pension Schemes Bill 2019 is causing a marked degree of consternation in the restructuring community. The proposed legislation introduces new offences that can be prosecuted in the criminal courts and further moral hazard powers that are likely to significantly reduce the directors’ and insolvency practitioners’ ability to provide commercial and creative solutions to creditors … Continue Reading
Hong Kong’s well-established financial market, low taxation incentives, and laissez-faire policies have consistently earned the city the title of the World’s Freest Economy and the third easiest place to do business in. Yet, the city’s on-going social movements seem to be having an influence on its financials. Hong Kong reported a GDP contraction of 2.9% … Continue Reading
Happy New year to all of our blog readers! With the start of a new decade, we are giving our restructuring and insolvency blog a fresh new look and name: Restructuring GlobalView. Restructuring GlobalView will provide readers with unique perspectives on restructuring and insolvency issues from around the globe, offering practical views from the global … Continue Reading
We recently commented on the Government’s Clean Air Strategy raising awareness of the potential impact on a wide range of businesses if they failed to plan ahead to ensure compliance. Hot on the heels of this follows the Government’s Green Finance Strategy, launched on 2 July 2019. This strategy, together with the Clean Air Strategy … Continue Reading
There in an increasing focus on emissions and pollution through various regulations and initiatives. You may have seen coverage of, or taken part in activities for “Clean Air Day” on 20 June 2019, a campaign to grow awareness about air pollution. Clean Air legislation has of course been around for a number of decades, with … Continue Reading
The proposal to reinstate Crown preference in insolvency has met resistance from all angles; the insolvency profession, turnaround experts, accountants, lawyers and funders. But despite HMRC’s bold statement in its consultation paper that the re-introduction of Crown preference will have little impact on funders, it is clear following a discussion with lenders that it may … Continue Reading
The demise of high street retail and the insolvency of household names, including Woolworths, BHS, and more recently Debenhams and Monsoon has been a real headache for property owners. The moratorium created by administration ties the hands of landlords, preventing them from forfeiting leases without first having obtained the consent of the administrator or the … Continue Reading
In a series of articles prepared for our “Talk to the International Experts” program we take a look at “Undoing Business in the UK” highlighting the options available to corporates wishing to restructure, wind up or close their UK business. Click here to read our guide.… Continue Reading
It was a painful outcome for the administrator of ARY Digital UK Limited (“ARY”) when he was found in breach of duty and liable to pay £743,750. The case of Brewer and another (as joint liquidators of ARY Digital UK Ltd) v Iqbal [2019] EWHC 182 (Ch) reminds office holders of the importance of understanding … Continue Reading
