R3 proposals for a new moratorium for insolvent companies has clear benefits for distressed companies and their directors but its creditor appeal will depend on the details
Under R3’s proposals, published in April, a company could file for three weeks of protection from its creditors – which could be extended to six weeks in some cases – following a statutory declaration by their directors that the company is or is likely to become insolvent. During this period, creditors would be barred from taking any action to recover debts incurred prior to the moratorium and suppliers would not be able to stop supplying goods or change the terms of their supply. This would be something of a sea change: unsecured creditor…
Read the full article at: http://economia.icaew.com/opinion/may-2016/r3s-moratorium-proposals-for-insolvent-companies-could-save-businesses