Practitioners have welcomed a proposed shakeup of the UKs corporate insolvency regime which would introduce a three-month moratorium on pursuing legal action against struggling businesses looking at rescue options.
Measures are also proposed to help businesses continue trading through the restructuring process by preventing them from being ‘held hostage by key suppliers, and to develop a flexible restructuring plan which would make rescue schemes binding on secured and unsecured creditors.
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The proposals are outlined in a consultation published this week by the Department for Business, Innovation and Skills.
Business secretary Sajid Javid (pictured) said: ‘The UKs corporate insolvency regime is already highly rega…
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