Looking West? The Impact of the Corporate Insolvency and Governance Bill on the UK Insolvency Framework

10 July 2020
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Key takeaways:

  • The UK has reformed the UK Insolvency Framework through the Corporate Insolvency and Governance Act, which came into force on 26 June 2020;
  • The amended framework is designed to bolster the ability to rescue UK businesses in difficulty by introducing a new moratorium period and a new, court-sanctioned, restructuring plan allowing for cross-class cram-downs and the restructuring of interests of non-financial creditors;
  • The legislation has also introduced restrictions on the use of insolvency-triggered termination clauses in supply contracts and some temporary changes to help businesses navigate the current economic crisis.