Related insights: Finance: Banking, Restructuring, Insolvency

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Negative interest rates – pay day for borrowers?

13 Oct 2020
The Bank of England has written to UK banks to ask if they would be ready if interest rates were cut to zero or turned negative. Back in March, the Bank of England reduced its Base Rate to 0.1%, its lowest ever level, in order to help reduce borrowing costs as COVID-19 tightened its grip on the UK economy. In May, the Governor of the Bank of England paved the way for negative interest rates and lenders began contingency planning for this. But does that mean borrowers will soon receive interest on what they've borrowed? The answer might not be what you'd expect…
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Restrictions on winding up petitions extended – but personal liability for wrongful trading set to return

24 Sep 2020
While announcements have been made, and measures extended, to help corporate Britain, directors faced with the difficult decision of whether to trade on through the crisis could suddenly very exposed once again. As previously discussed, the Corporate Insolvency and Governance Act 2020 (CIGA), introduced a number of temporary measures to seek to avoid an avalanche of insolvencies during the coronavirus crisis.
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Financial regulation: getting back to "normal"?

14 Sep 2020
COVID-19 has now been interrupting almost every aspect of work and life for so long, it's hard to remember what "normal" is. Or, maybe more accurately, what normal was. The summer holidays have ended, the furlough scheme is beginning to wind down, every effort has been made to have schools able to open and stay open, and the Government is encouraging people to get back to work. But what does this actually mean for the financial services industry?
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Virgin Atlantic restructuring plan: the first of many?

20 Aug 2020
As previously reported in our article of 21 May 2020, the Corporate Insolvency and Governance Act 2020 (Act), introduced a number of new tools for businesses suffering financial distress. One of the new measures introduced by the Act was the 'Restructuring Plan' – a process modelled on the existing scheme of arrangement (Scheme).
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UK Supreme Court clarifies the rule of "reflective loss"

28 Jul 2020
The UK's Supreme Court ("UKSC") has handed down its judgment following the hearing of the appeal in the case of Sevilleja v Marex Financial Limited [2020] UKSC 31 ("Marex"). The appeal was against the decision of the Court of Appeal to find that the rule of reflective loss applied to 90% of Marex's claim, which was brought in its capacity as a creditor.