The Analysis News & Opinions
Opinion
Finding a way beyond the disaster-recovery phase
PALADIN
Webinars have fast become a key part of the industry, bringing the ideas and information that you need direct to your desk-top. So it was, last month, that CCRMagazine
and Paladin Commercial held a webinar looking into the subject of disaster recover. Clearly, as the economy starts to open up
again, we are progressing through several stages of the disaster-recovery process. Indeed, it was interesting to learn, from Paladin’s pre-webinar research, that almost every business on the call did have a disaster- recovery procedure in place and written down, although many organisations said that this dealt more with the need to cope, for example, with a situation where a particular site was suddenly unavailable, rather than a pandemic affecting such a broad scope of the world economy. Paladin prides itself on being adaptable, with
a multi-lingual team who are able to support clients in their local language. It offers flexibility to meet needs as they change, and provides up-to-date, strategic guidance to ensure you receive the best service. So it was interesting to hear how they,
amongst the wider industry, have adapted and are now able to offer their flexibility to other businesses.
Stephen Kiely Editor, CCRMagazine stephen @
ccrmagazine.co.uk
Major changes made to insolvncy rules
The insolvency and restructuring profession have given a cautious welcome to the publication of the Corporate Insolvency and Governance Bill, described as representing the biggest change to the UK’s insolvency and restructuring framework for almost 20 years. The bill contains temporary changes to
prevent winding-up petitions and statutory demands, together with the temporary suspension of wrongful trading provisions until 30 June 2020 at the earliest – allowing directors to continue trading without the threat of personal liability. In addition, the bill will ease regulatory requirements enabling companies to delay annual general meetings until late September 2020 or hold ‘closed AGMs’ online. Benjamin Wiles, managing director,
restructuring advisory, Duff & Phelps, said: “Of the three permanent changes to the insolvency regime, the most impactful is the introduction of a ‘company moratorium’. This provision will give distressed companies which are viable 20 business days, extend- able to 40 or longer by agreement, to pursue a rescue plan.” To qualify for the moratorium, a firm
must be unable to pay its debts and it is likely that a moratorium would result in a rescue of the business as a going concern. The second new provision is a change to
existing supplier contracts so that termination clauses do not trigger, and supply issues or price increases cannot be implemented. This will mean that contracted suppliers will have to continue to supply companies despite the pre-insolvency arrears, unless they can demonstrate ‘hardship’ as a result. The third key element of the bill will
enable companies in financial difficulty, or their creditors, to form a ‘restructuring plan’. Although similar to a scheme of arrangement,
the major difference is that it can impose the restructure on any dissenting creditors, be it secured or unsecured, who voted to reject it. But these dissenting creditors cannot be put into a worse position than what the court considers would have been the most likely outcome if the plan was rejected. Colin Haig, president of R3, added:
“Having called for corporate insolvency reforms since 2016, we welcome the introduction of the bill to Parliament. “The measures contained in the bill will
support the profession's efforts to help businesses navigate the enormous economic damage caused by the pandemic – this legislation comes not a minute too soon. “The new tools will add to the options
available to insolvency and restructuring professionals trying to rescue businesses, and will enhance the UK's globally recognised insolvency and restructuring framework. “We are also pleased our feedback on the
draft proposals has been taken on board by the government. Previously, for example, the moratorium would only have been open to solvent businesses, but now the legislation will enable insolvent businesses to obtain a breathing space to review their options, free from the risk that a creditor may push the firm into an insolvency procedure prematurely. This greatly increases the number of struggling but potentially viable businesses who could benefit from a vital breathing space, and will help to repair the economic devastation caused by the pandemic. “We appreciate that in producing this bill,
the government has condensed a process that usually takes more than year into just a few weeks. The profession will therefore be keen to examine the detail of the legislation, but overall, will welcome this positive step forward.”
10
www.CCRMagazine.com
June 2020
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52