Insolvency: Why is Croydon Council declaring itself insolvent? Croydon Council became only the second UK local authority in twenty years to declare itself insolvent when it issued a Section 114 Notice on 11 November, confirming that it cannot fulfil its statutory obligation to balance its books. Northamptonshire County Council was the first back in February 2018. The immediate effect is
Financial help for businesses The Coronavirus crisis has created the most difficult financial climate in living memory, maybe for best part of a century. Equally, never has there been so much help and support for entrepreneurs battling to keep their businesses afloat. The government has laid a protective cloak of loans, payment deferrals and legislation over our commercial Pandemic puddle,
Crown preference background The Finance Act 2020 has restored preferential status in an insolvency as from December 2020 to Crown debts, such as unpaid VAT and PAYE. This reverses a change made way back in 2003 by the Enterprise Act, which was intended to placate banks for losing their ability to take control of struggling borrowers by appointing their own
It may have taken almost twenty years, but the insolvency profession has finally got round to adapting the Administration insolvency process brought in by the 2002 Enterprise Act to reflect changing public attitudes towards the exercise of creditor power in business rescue. There is a certain irony that the sudden interest in so called ‘Light Touch’ Administrations has been prompted
The Pandemic is threatening to cause a financial crisis to equal of even surpass the horrors of The Great Depression almost a century ago. There are few parts of the UK and global economy that aren’t being affected. Right now, there a very few winners and a huge number of losers. Worst of all is the uncertainty as official guidance
The Corporate Insolvency & Governance Act 2020 (“The Act”) The Act implements insolvency reforms first proposed by the government as far back as 2016, which were the subject of extensive public consultation and then a further government response in August 2018. The reforms then lay dormant until brought back to life by the Coronavirus crisis in March 2020. The significance
