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
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
