The English Court of Appeal has handed down its judgment in the Debenhams case, on which we acted. A copy of the judgment can be downloaded here. This upholds the decision of the High Court, which followed the earlier decision in Carluccio’s.
The Covid-19 crisis could plunge the UK into the worst economic depression since the 1930s, and with it will come a spate of corporate insolvencies. In this article, Marc Jones explains why the existing insolvency regime is out of tune with the current government policy of saving good businesses and what needs to change to bring it into line.
Nicola Sharp of business crime solicitors Rahman Ravelli explains wrongful trading and the responsibilities placed on directors.
In response to the crisis caused by Covid-19, Business Secretary Alok Sharma announced in March a relaxation of the UK’s insolvency framework. Included in this – along with key payment safeguards for creditors and suppliers - was a temporary suspension of wrongful trading provisions with retrospective effect from 1 March, for an initial period of three months.
It has been reported that Debenhams which entered administration earlier this month for the second time will be managed as a 'light touch' administration.
In this article we look at what this actually means and whether 'light touch' administration could be a useful tool for both businesses and insolvency practitioners looking to negotiate a route through the coronavirus pandemic.
The COVID-19 crisis has imposed difficult global challenges on the retail industry. Mass closures of brick and mortar store fronts and supply chain disruptions have resulted in an unprecedented halt to business activities. Nevertheless, there are some steps retailers can take to better protect their business interests.
A government press release issued on 23 April 2020 will be welcomed by commercial tenants up and down the country, particularly those in the retail and leisure industries, but it will not make such welcome reading for landlords.
In the current climate many commercial tenants are having a difficult time and consequently so too are landlords. The government has urged landlords and investors to work collaboratively with high street businesses which have found themselves unable to pay their rent during the COVID-19 pandemic.
In this week’s update: the High Court orders scheme creditor meetings to be held by phone, IA guidance on executive pay and a few other items.
Covid-19 is affecting the way people conduct their business, retain their staff, engage with clients, comply with regulations and the list goes on. Read our thoughts on these issues and many others on our dedicated Covid-19 page.
Court allows scheme meetings to be held electronically
On 28 March 2020, the Government proposed certain insolvency law reforms in response to the COVID-19 crisis, including a temporary suspension of wrongful trading provisions for company directors.
The measures are intended to apply retrospectively from 1 March 2020 for three months, and aim to encourage directors to continue to trade during the pandemic.
Assistance available to UK businesses
As the Covid-19 crisis continue to unfold, the UK Government have announced a series of financial assistance packages aimed at easing the financial impact on UK businesses during the COVID-19 pandemic.
The following is a breakdown of the packages introduced by the Government and guidance on how to seek assistance with your business finances. These schemes are subject to change on little or no notice and details are correct as at 28th April 2020.
Loans and Financing
Can a company in liquidation adjudicate? Balfour Beatty Civil Engineering Limited & Anor v Astec Projects Limited, or what happens when an irresistible force meets an immoveable object?
“Art is born when the temporary touched the eternal; the shock of beauty is when the irresistible force hits the immoveable post” G K Chesterton