header-logo header-logo

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

Crisis management & insolvency

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

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

From global fraud cases to fishing off-grid, Mishcon de Reya’s chair of dispute resolution Hugo Plowman discusses mentors, management switching off

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law announces partner promotion and new hires amid a record year for enquiries

Switalskis—Rebecca Parry & Hannah Gamble

Switalskis—Rebecca Parry & Hannah Gamble

Switalskis wills and probate team extends reach with two appointments

NEWS
Restrictions on workplace non-disclosure agreements could make settlements slower, more complex and more expensive when reforms expected in 2027 take effect
Private prosecutors face closer scrutiny under Crown Prosecution Service guidance designed to strengthen accountability and consistency when intervention is requested
Foreign states cannot necessarily claim immunity for cyber operations launched abroad against computers in Britain, following a divided Supreme Court ruling
Defendants who make unsupported complaints about their lawyers risk losing legal aid while confiscation proceedings continue without representation
Lawyers advising Russian clients face different sanctions restrictions across the UK, EU and US, despite their shared objective of increasing pressure on Russia
back-to-top-scroll