New UK Insolvency Law Fails to Deliver

A new insolvency law fast tracked by the UK government as a response to the impact of the Covid-19 pandemic on businesses has prompted confusion and disappointment among restructuring advisers, Reuters reported. The main gripe among advisers centres around the new rules governing declaring a debt moratorium - essentially a repayment holiday - which they say are unworkable for larger companies holding more complex debt structures that include high-yield bonds and bank debt. “The moratorium is an opportunity missed. It is more or less useless for bigger deals,” said Andrew Wilkinson, a partner in the restructuring practice at law firm Weil. “There is no stay on bank debt and if you also have high-yield bonds you just can’t use the moratorium at all. It doesn’t work as it is.” Read more