The Corporate Insolvency and Governance Act 2020 has introduced a new standalone moratorium procedure for companies.1 The moratorium is part of a package of significant legislative reforms contained in the Act, intended to enhance the UK’s restructuring rescue culture. These were originally consulted on between 2016 and 2018 and were fast-tracked to deal with the COVID-19 pandemic.
Overview
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Federico Zucconi, partner del dipartimento Finance, Projects & Restructuring, analizza gli effetti della normativa di emergenza volta ad agevolare l’accesso a nuova finanza da parte delle imprese, evidenziando le zone d’ombra rimaste nella disciplina anche dopo la conversione in legge del Decreto Liquidità.
The national lockdown in South Africa has left many companies financially distressed and unable to meet their contractual obligations. Looming on the landlord’s horizon may well be its approach to tenants who are placed under business rescue.
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.
In response to the COVID-19 outbreak, a number of insolvency laws have been updated. Our guidance outlines what this means to businesses in 17 countries: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Luxembourg, Netherlands, Poland, Slovakia, Spain, Sweden and the UK.
Days ago a lawyer's answer to these questions would have been the all too often heard "well, it depends". There would have been a serious risk of any such adjudication being stopped by the court granting a mandatory injunction to halt it. Ask the same questions again now and the response would be a resounding "yes and yes!"
The Hungarian government submitted a bill to the Parliament on 12 June 2020 that introduces certain amendments to Act XLIX of 1991 on Bankruptcy and Liquidation Proceedings (Bankruptcy Act) with the effect of 1 August 2020.
Due to the severe economic consequences of the coronavirus pandemic, the Hungarian Government adopted Government Decree 249/2020 (28 May) that introduced certain amendments to Act XLIX of 1991 on Bankruptcy and Liquidation Proceedings.
It is imperative that companies in financial distress prioritise their continued existence and consider business rescue as an alternative to liquidation. One of the major advantages of the business rescue process is the moratorium (stay) on legal proceedings which aims to give financially distressed companies sufficient breathing space to trade out of its insolvency. A temporary moratorium automatically comes into operation upon the filing of a resolution placing the company into business rescue or the issuing of an application for an order to this effect.
In many bankruptcy cases, disappointing recoveries lead creditors to look for deep pockets as targets. This scrutiny is frequently directed at a bankrupt company’s directors and officers (D&Os or fiduciaries) in so-called D&O suits. These lawsuits are most often brought by bankruptcy trustees, creditors’ committees, liquidating trusts, and other bankruptcy estate representatives.