The Corporate Insolvency and Governance Act (CIGA) in the UK, which became law on 26 June 2020, promises to be the trigger for the biggest changes seen in the insolvency world for almost 20 years, and it contains a number of temporary measures construction companies should also be aware of that are designed to support business recovery from the Covid-19 pandemic.
Provisions in the Act relating to termination rights and those offering distressed companies time to restructure are of particular relevance to the construction sector.
The new prohibitions on “ipso facto” or termination clauses in supply contracts will have a considerable impact on the rights of suppliers to insolvent companies, and how employers and main contractors respond t…
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