Bankruptcy is a term that tends to instill images of “For Sale” or “Everything Must Go” signs posted in windows, but this often is not the case. In fact, a bankruptcy filing is one way for a business to refocus its efforts and reorganize

The number of confirmed cases of COVID-19 in the United Arab Emirates (UAE) has risen rapidly, prompting local authorities to put in place stricter containment measures, including a full lockdown which commenced on 4 April 2020. Outside of businesses in vital sectors, all other businesses were directed to apply a work from home policy or to close down.

The epidemiological outbreak of COVID-19 has collapsed the international health systems and provoked huge economic losses to global economies. For these reasons, countries affected by COVID-19 have adopted sanitary and economic measures to reduce the spread and negative impact to its economies.

The Australian government has taken swift action to enact new legislation that significantly changes the insolvency laws relevant to all business as a result of the ongoing developments related to COVID-19.

The Coronavirus Economic Response Package Omnibus Act 2020 (Response Act) became effective on March 25, 2020, and is an effort to provide temporary relief to companies experiencing financial distress as a result of the ongoing and rapidly changing economic slowdown caused by COVID-19.

The COVID-19 Response Act

It is not entirely clear how the UK Coronavirus Job Retention Scheme operates in line with current UK insolvency legislation, although it is clear that administrators can use the scheme and furlough employees.

What should you do if another business (i.e. a supplier, customer or other contract counterparty) is suffering distress and may be considering filing for insolvency?

This alert provides several “do’s” and “don’ts” to consider before and after insolvency and advises taking a proactive approach to dealing with distressed customers.

The Coronavirus Job Retention Scheme (JRS) was announced on 20 M arch 2020, and went " live" on 20 April 2020.

In the wake of the COVID-19 pandemic, we are often asked what our clients should do if a business (such as a supplier, customer or any other contract counterparty) is suffering distress and may be contemplating filing for insolvency.

The German Federal Government’s various aid measures for employees, self-employed persons, small, medium and large enterprises are suitable for alleviating personal hardships, reducing the economic costs of insolvencies and plant closures and supporting the economy. In addition, it is important that the German Federal Government will play also a constructive role in overcoming the crisis on a European level, to avoid the COVID19 pandemic leading to a European sovereign debt crisis.

In the wake of the COVID-19 pandemic, we often are asked what our clients should do if a business counterparty (such as a vendor, customer or other contract counterparty) is suffering distress and may be contemplating filing for bankruptcy. It is, of course, impossible to anticipate every potential scenario, but here are several general “do’s and don’ts” to consider.