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05 June 2020
The much anticipated Corporate Insolvency and Governance Bill (the Bill) was published on 20 May 2020.
The proposed legislation is split into two broad categories: temporary provisions brought about as a result of COVID-19 and permanent provisions which will result in fundamental changes to UK insolvency law. The proposals, both temporary and permanent, reflect a shift towards a more debtor-friendly regime.
While some of these measures have been in the pipeline for some time, others are a much newer creation, and there will very likely be the need for amendments as we work through how these provisions operate in practice. Broadly, however, both the addition of new tools to the UK restructuring and insolvency offering and short term measures designed to help companies survive the financial impact of COVID-19 are welcome developments.
The legislation is detailed, but below is a summary of each of the main proposals. MPs will consider all stages of the Bill on 3 June 2020 and it may therefore still be subject to change. Even with a fast tracked process, it is unlikely that the Bill will be enacted before the end of June.
Ipso facto clauses
Statutory demand/winding up
For further information on this topic please contact Amy Patterson, Nick Moser or Stephen O'Grady at Taylor Wessing by telephone (+44 20 7300 7000) or email (firstname.lastname@example.org, email@example.com or firstname.lastname@example.org). The Taylor Wessing website can be accessed at www.taylorwessing.com.
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