header-logo header-logo

Crisis management & insolvency

14 May 2020 / Chloe Shuffrey
Issue: 7886 / Categories: Features , Commercial
printer mail-detail
20697
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

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

DWF—19 appointments

DWF—19 appointments

Belfast team bolstered by three senior hires and 16 further appointments

Cadwalader—Andro Atlaga

Cadwalader—Andro Atlaga

Firm strengthens leveraged finance team with London partner hire

Knights—Ella Dodgson & Rebecca Laffan

Knights—Ella Dodgson & Rebecca Laffan

Double hire marks launch of family team in Leeds

NEWS
Small law firms want to embrace technology but feel lost in a maze of jargon, costs and compliance fears, writes Aisling O’Connell of the Solicitors Regulation Authority in this week's NLJ
The Supreme Court issued a landmark judgment in July that overturned the convictions of Tom Hayes and Carlo Palombo, once poster boys of the Libor and Euribor scandal. In NLJ this week, Neil Swift of Peters & Peters considers what the ruling means for financial law enforcement
Charlie Mercer and Astrid Gillam of Stewarts crunch the numbers on civil fraud claims in the English courts, in this week's NLJ. New data shows civil fraud claims rising steadily since 2014, with the King’s Bench Division overtaking the Commercial Court as the forum of choice for lower-value disputes
Bea Rossetto of the National Pro Bono Centre makes the case for ‘General Practice Pro Bono’—using core legal skills to deliver life-changing support, without the need for niche expertise—in this week's NLJ
Charles Pigott of Mills & Reeve reports on Haynes v Thomson, the first judicial application of the Supreme Court’s For Women Scotland ruling in a discrimination claim, in this week's NLJ
back-to-top-scroll