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Crisis management & insolvency

14 May 2020 / Chloe Shuffrey
Issue: 7886 / Categories: Features , Commercial
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Chloe Shuffrey discusses ‘light touch’ administration as a rescue tool during the pandemic

In brief

  • The Consent Protocol: key powers.

On 28 March 2020, the Department for Business, Energy, and Industrial Strategy (BEIS) announced a series of insolvency legislation reforms including a new court-based restructuring tool modelled on the Scheme of Arrangement and a short business rescue moratorium to protect companies facing the prospect of insolvency while they establish a rescue plan. While it is hoped that these new tools will provide a lifeline to many companies being pushed to the brink of insolvency as a result of the COVID-19 crisis, the full detail of the proposals and the relevant legislation remain unclear.

In the meantime, the insolvency profession has been gearing up to adapt the insolvency tools we currently have to meet the crisis, and in particular advocating the ‘light touch’ administration (currently being trialled by Debenhams, among others), whereby the administrators leave certain management powers and, essentially, the day-to-day running of the business with directors while they focus on

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MOVERS & SHAKERS

CBI South-East Council—Mike Wilson

CBI South-East Council—Mike Wilson

Blake Morgan managing partner appointed chair of CBI South-East Council

Birketts—Phillippa O’Neill

Birketts—Phillippa O’Neill

Commercial dispute resolution team welcomes partner in Cambridge

Charles Russell Speechlys—Matthew Griffin

Charles Russell Speechlys—Matthew Griffin

Firm strengthens international funds capability with senior hire

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Generative AI isn’t the villain of the courtroom—it’s the misunderstanding of it that’s dangerous, argues Dr Alan Ma of Birmingham City University and the Birmingham Law Society in this week's NLJ
James Naylor of Naylor Solicitors dissects the government’s plan to outlaw upward-only rent review (UORR) clauses in new commercial leases under Schedule 31 of the English Devolution and Community Empowerment Bill, in this week's NLJ. The reform, he explains, marks a seismic shift in landlord-tenant power dynamics: rents will no longer rise inexorably, and tenants gain statutory caps and procedural rights
Writing in NLJ this week, James Harrison and Jenna Coad of Penningtons Manches Cooper chart the Privy Council’s demolition of the long-standing ‘shareholder rule’ in Jardine Strategic v Oasis Investments
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