Last month, we discussed practical tips for dealing with contractor insolvency as part of our ongoing construction webinar series.
Our colleague, Doug Wass, has already shared three key points to be aware of when a contractor becomes insolvent. In this article we discuss, in more detail, the practical points clients and those administering building contracts on their behalf should consider when contractor insolvency is suspected and occurs.
Three weeks spent entirely at home seemed daunting at the time (little did we know…) and the prospect of wholesale business closures soon gave rise to serious concerns about the potential impact which those closures would have on the wider economy.
With an increased number of businesses experiencing financial difficulties in the current economic climate, lender-led debt restructurings are becoming more prevalent. Such restructurings are commonly achieved by the lender releasing, capitalising or amending its debt, each of which will have tax consequences for the borrower group.
This note sets out a brief summary of some of the key UK tax points to be aware of, and pitfalls to avoid, when undertaking these debt restructurings.
Debt waivers
The government has once again suspended wrongful trading, this time until 30 April 2020. The government had previously suspended wrongful trading for the period between 1 March 2020 and 30 September 2020. To the surprise of many commentators in the insolvency profession the government let the first suspension lapse at the end of September. Perhaps because of the "second wave" of Covid-19 the government has seen it fit to revive the suspension.
The Government has announced that it will introduce new measures to subject pre-pack sales in an administration to a connected person to mandatory independent scrutiny.
In this week’s update: designated members of an insolvent LLP breached their fiduciary duties when they agreed to waive a debt owed to the LLP, a gift of shares was effective, even though there was no evidence of an executed instrument of transfer and the Pre-Emption Group extends the relaxation of its principles to 30 November 2020.
“Buy land, they’re not making it any more”. Are CVAs making a mockery of Mark Twain’s advice?
“Lies, damned lies, and statistics”
In this week’s update: more details on plans for reforms of governance, audit and executive pay, Companies House is ending its temporary strike-off policy, the court orders virtual meetings on a scheme of arrangement and the FRC calls for participants in a review of company disclosures.
In this week’s update: The Corporate Insolvency and Governance Act 2020 comes into force, the Government extends company and LLP filing deadlines, new guidance on public health emergency takeover interventions, FCA censure of accompany for historic market abuse and a few other items.