In these unusual times, Hardwicke is open for business as usual and here to help you and your clients with the multiple issues that may arise out of the current economic conditions. This information update is to help keep you up to date with developments and to share our insight in response to the developments our country is going through at this unprecedented time.

We will be providing regular information to keep you up to date. This update covers:

There have been increasing concerns in recent weeks that UK insolvency law does not accommodate the short-term impact of COVID-19 on many businesses.  In response, the Business Secretary announced on 28 March that the UK's insolvency rules would be amended as part of the Government's wider business support package.  Whilst the measures that the Government intends to implement have not yet been fully detailed, this note summarises what has been announced so far and what we might expect, based on the Business Secretary's comments.

Since the beginning of March, the UK has seen various high profile company failures as a result (at least in part) of COVID-19. Flybe and Laura Ashley may be the first of many businesses unable to react and adapt to the unprecedented challenges.

Midlothian Council v Raeburn Drilling and Geotechnical Limited & Others

In these unprecedented times, the U.K. government is seeking to preserve U.K. businesses and has already introduced significant measures to achieve that aim, including:

While the next few months may be uncertain for UK business in light of coronavirus (Covid-19), the mantra of "business as usual" will continue to apply to (most) organisations, and this may include carrying out a restructure of it.

What Is a Restructure?

In the context of a company or business, a restructure usually involves making changes in respect of its ownership, structure or assets.

The reasons for carrying out a restructure often include:

Although the position is fast-moving and guidance is expected to be given in due course by the Law Society, it is presently understood that remote video conferencing technology such as Skype or Zoom could be used by a practising solicitor to administer a statutory declaration.

The Chancellor has committed to doing “whatever it takes” to save businesses and workers and, as part of a raft of measures, has pledged to pay 80% of staff kept on by employers.

The ILA Technical Committee, in conjunction with the CLLS, has produced the attached briefing note that reminds practitioners and businesses of the flexibility of a UK administration to stabilise, protect, and, if necessary, restructure companies.