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
All lenders and insolvency practitioners know what happens to the assets section of a company’s Balance Sheet when it goes into any formal insolvency process, even those designed as rescue procedures. Valuation of assets in a business The valuations placed on assets by directors in good faith or at least in compliance with reporting standards and then supported by external
Getting Back on Site – Challenges as Construction Gets Started After Covid-19 Shutdown By the end of April, 70% of sites operated by major contractors were open again and virtually all the major house builders were back in operation, driven by the severe financial implications of the lockdown. A survey in early May suggested that the industry had been losing
The legal pitfalls to be aware of Businesses fail for all sorts of reasons, some within the control of the entrepreneur behind them, others because of a variety of external factors. Most failures will end with at least some debts unpaid and with the company going into Liquidation, possibly after an attempt has been made first to rescue it through
As we all know, most early stage tech and other high growth businesses are often reliant on equity funding, typically from institutions (such as VCs), or family offices, high net worth investors and crowd-funding platforms. These rapidly-developing businesses are generally in a perpetual state of fund-raising, as they grow towards gaining sufficient traction in the market to make them profitable
International co-operation in the coronavirus crisis Globalisation has been with us for decades, bringing new and troubling dimensions to even relatively small insolvency cases and for the insolvency practitioners handling them. Suddenly, they were dealing with UK businesses with assets abroad and all manner of creditors and stakeholders in wild and wonderful places, all with no status or powers in
