The Corporate Insolvency and Governance Act 2020 makes the most significant changes to UK insolvency law in a generation. It had a rapid passage through the UK parliamentary process, making its way from first publication on 20 May 2020 to Royal assent on 25 June 2020 in just over five weeks. This article provides a brief overview of the key measures introduced by the Act (both permanent and temporary) and summarises the amendments made to the Act during its progress through parliament. It also provides links to our further, more in-depth, analysis.

The Corporate Insolvency and Governance Bill has been described as an “extraordinary Bill for extraordinary times” . First published on 20 May 2020, it has had a rapid passage through the UK parliamentary process, so it could become law (an Act of Parliament) by the end of June. At the time of writing, the Bill is almost at the end of its parliamentary journey with only one final stage outstanding - a return to the House of Commons for a consideration of amendments - before it is sent for Royal Assent and becomes law.

While a range of outcomes, including a departure under the terms of the current Withdrawal Agreement, remains possible, it is important for businesses to plan for a no-deal Brexit, in which the UK leaves the EU without a withdrawal agreement or other deal. Here we look at the potential impact of a no-deal Brexit on cross-border corporate recovery and insolvency.

Key issues

The British Retail Consortium (BRC) recently reported strong trading for the UK high street in the weeks leading up to Christmas 2016. In a fillip for a sector beset by problems, the slow start to the Christmas trading period was reversed as spending in the sector in December grew 1.7% on the same period last year.

According to the UK Gift Card & Voucher Association, in 2014 the gift card and voucher market was worth £5.4 billion in the UK and $124 billion in the US. 

Gift cards can confer numerous benefits on the retailer, including promotion, working capital and additional profit from up-spend, and are popular with consumers as a method of paying for goods and services in advance of receiving them. 

Protecting your business from your customer’s insolvency

In the second article in our series on risk and opportunity in the fashion retail sector, Rob Russell and Peter Manley assess one of the most prominent areas of risk for suppliers − the insolvency of a trade customer/ retailer.

Following on from our article on “Understanding and managing the risks of an insolvent acquisition” in the Q2 2014 edition of Global Insight, in this third article in our series of risks and opportunities in the fashion retail sector we assess one of the most prominent areas of risk for suppliers - the insolvency of a trade customer/retailer. 

In the Q3 2014 edition of Global Insight, we discussed the merits of bankruptcy sales for distressed hospitals in the United States. In many ways, the challenges facing healthcare companies in America have been mirrored in the UK care home sector in recent years. Unlike the US, the majority of health service provision in the UK is via the publicly funded National Health Service. An exception exists however in the provision of residential care to the elderly which has seen large scale private sector involvement.

CONSIDERABLE RISKS FOR PRIVATE INVESTORS

Reposted from Law A La Mode 

Opportunity Arises Out of Adversity

The recent global financial crisis has seen consumers tighten their belts and the retail industry as a whole has faced increasing pressure. Profits warnings have peppered the financial pages and fashion retailers, in both the budget and luxury sectors, have been subject to formal insolvency processes.

However, for those fortunate enough to be in the position of buyer, the current climate can give rise to considerable opportunities, including:

Understanding and managing the risks of an insolvent acquisition

OPPORTUNITY ARISES OUT OF ADVERSITY

The recent global financial crisis has seen consumers tighten their belts and the retail industry as a whole has faced increasing pressure. Profits warnings have peppered the financial pages and fashion retailers, in both the budget and luxury sectors, have been subject to formal insolvency processes.