The Analysis News & Opinions


Insolvency professionals speak out on rule changes


Senior insolvency professionals have


responded to the government’s decision to extend its ban on the use of statutory demands and winding-up petitions, which it introduced at the end of April. Colin Haig, president of insolvency and


restructuring trade body R3, said: “The chancellor's decision to temporarily extend his COVID insolvency measures, coupled with the other aspects of the support package announced today, will be welcome news to many businesses across the country. “The pandemic has hit British businesses


in a way that no-one could have imagined or planned for. These temporary insolvency measures, combined with the furlough scheme and the package of emergency business loans, have played an important role in preventing pressure from translating into increased corporate insolvency levels of the size and scale we would expect to see in this type of economic climate.


“The insolvency and restructuring


profession will also welcome the extension of the temporary relaxation of entry require- ments for the new moratorium procedure. This measure could enable more businesses to access this important tool over the coming months, and help to facilitate the rescue of otherwise-viable businesses. “However, while the chancellor's


announcement will make a real difference in the coming months, these measures cannot be prolonged indefinitely, and the government will face a number of questions when this extension ends. “What will the government’s approach be


to the mounting level of corporate debt in the economy? What further flexibility will HMRC provide to COVID-hit businesses which need extra time to pay their debts? “The government needs to make the most of the time it has bought for business,


Momentum builds towards webinar


Momentum is building towards the webinar series for collections professionals with many in the industry already booked to attend. If you have not done so already, there is still time to book your place. CCR is partnering with award-winning


law firm Brachers to deliver the webinar providing expert


legal guidance on


compliant collection strategies, including when to use legal action, in the current challenging climate. ‘Collections amidst COVID – Holistic


and compliant strategies, including bespoke legal action’ on Wednesday 4 November will be delivered by Rob Thompson and Graham Wallis, partners at Brachers, as well as senior associate Nicky Alabaster. It will cover important areas such as the landscape of collections, what different


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strategic thinking might be required at this time, the challenges that you might face, and what role the selective use of legal actions has to play. Stephen Kiely, editor of CCRMagazine,


said: “It is always rewarding to see how the excitement builds towards these events. “We are very proud to be working with Brachers to deliver what should be a valuable learning opportunity, so I am pleased to see how quickly the industry has responded.” l To register go to, www.brachers.co.uk/ events/collections-amidst-covid


www.CCRMagazine.com


industry and the economy with today’s announcement to consider how it will answer these questions. “We would welcome HMRC adopting a


constructive approach to sensible, well-struc- tured restructuring proposals. They are an important stakeholder in insolvency and restructuring procedures and their support at this time is and will be very significant.” Meanwhile, corporate insolvencies fell


to 778 in August 2020 compared to the previous month’s figure of 961 and are significantly lower than they were in August 2019 (1,369). Personal insolvencies fell to 6,359 in total


compared to last month's figure of 7,330 and are significantly lower than August 2019’s figure (8,892). Mr Haig addeded: “The decrease in


corporate insolvencies over August was driven by a drop in administrations and compulsory liquidations, while the fall in personal insolvencies is driven by a reduction across each of the three main personal insolvency processes (bankruptcies, Debt Relief Orders and Individual Voluntary Arrangements).”


October 2020


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