New 90-day moratorium for failing businesses will seriously impact creditors, CICM warns
The
move to a new model similar to Chapter 11 for UK businesses heading towards
insolvency could have serious consequences for creditors, cashflow and
thousands of small businesses within the supply chain.
And
while new Government proposals do not seek to support failing businesses
without any hope of recovery, the ability to distinguish the good’ from the
bad’ will be almost impossible to determine and the system open to abuse.
The
warning comes from Philip King, Chief Executive of the Chartered Institute of
Credit Management (CICM) in response to a review of the corporate insolvency
framework being undertaken by Insolvency…
Read the full article at: http://www.newbusiness.co.uk/articles/banking-finance/corporate-insolvency-service-framework-moving-towards-chapter-11-model