The UK government introduced the Corporate Insolvency and Governance Bill (CIGB) to Parliament on 20 May 2020. As well as including temporary measures to help support businesses affected by COVID-19, it proposes significant permanent changes to UK insolvency law. These proposed permanent changes include a new company moratorium: a mechanism to give a company in financial difficulty a temporary breathing space against creditor action, during which the directors remain in control, but overseen by a monitor.
This note provides high-level answers to some of the key questions parties to lending transactions are likely to have about the moratorium, based on the current form of the Bill. It focuses on the proposed new provisions applying withi…
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