Related insights: Restructuring and Insolvency
Higher education – facing up to the financial challenges of COVID-19
01 Oct 2020
The world of higher education is a varied place. Universities came into the COVID-19 crisis with varied levels of reserves on their balance sheets. Similarly, some generated substantial annual surpluses whilst others have had net losses for several consecutive years.
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.
Modern Methods of Construction and the new insolvency laws
23 Sep 2020
The focus on Modern Methods of Construction, or MMC, sharpened throughout the COVID-19 pandemic, with many wondering whether the outbreak and the consequential delays to existing construction projects would propel MMC forward as the future of construction.
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).
CIGA 2020 and construction contracts: no termination or suspension for insolvency
07 Jul 2020
The Corporate Insolvency and Governance Act (CIGA 2020) came into force overnight on Friday 26 June and will have a significant impact on contracts and contract management, in the construction sector, and many others.
Update on the Pension Schemes Bill and implications for pensions from the Corporate Insolvency and Governance Act 2020
06 Jul 2020
The Corporate Insolvency and Governance Act 2020 (CIGA) came into effect on 26 June 2020. Whilst the Act makes a number of changes to the insolvency regime. The Pension Schemes Bill is currently at report stage in the House of Lords, and is awaiting a date to be fixed for the third reading; the final opportunity for amendments to be made to the Bill.
Corporate Insolvency and Governance Act 2020: an update
02 Jul 2020
On 26 June 2020, the Corporate Insolvency and Governance Act 2020 (the "CIGA") came into effect. As anticipated in our previous article the CIGA was fast-tracked through Parliament and some amendments were ultimately made prior to it becoming law. While these amendments were not substantive, there are some key changes/clarifications between the first draft and the enacted legislation.
Charities in the wake of COVID-19 - financial challenges and insolvency
24 Jun 2020
The pandemic has strained the fabric of society with its impacts felt across the full spectrum of charities across the sector. Charities are ready to embrace that challenge. Many can see an opportunity to make more difference, to more people, than ever before. But we must not lose sight of the fact that charities are stepping up to the plate against a backdrop of their own difficulties. Fundraising activities have been restricted and volunteers forced to shield.
Court revisits the issue of the extra-territorial effect of section 236 once again
23 Jun 2020
Back in November we reported on the case of Wallace v Wallace [2019] EWHC 2503 (Ch), where the Court grappled with the diverging authorities on the issue of whether section 236 of the Insolvency Act 1986 has extra-territorial effect.
Winding-up petitions in the COVID-19 era: where are we now?
04 Jun 2020
The decision of Mr Justice Morgan in A Company (Injunction To Restrain Presentation of Petition) [2020] EWHC 1406 (Ch) (judgment anonymised) which was handed down on 2 June 2020 will be of interest to tenants and landlords alike in the current climate. The judgment, which follows the decision in Travelodge Ltd v Prime Aesthetics Ltd [2020] EWHC 1217 (Ch) will be of huge precedent value to commercial tenants that have been impacted by coronavirus and have been unable to meet their rent obligations as a result. The decision also sets an interesting precedent in another respect, namely the ability of a debtor to seek an injunction on the presentation of a winding up petition, not on the usual basis of a disputed debt but on the basis of measures to be implemented under pending legislation, in this case the Corporate Insolvency and Governance Bill.
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