UK Eyes Insolvency Law Reforms

The UK government is eyeing urgent changes to insolvency laws to prevent companies unable to meet debts due to the impact of coronavirus from being forced to file for bankruptcy, the Financial Times reported. The Department for Business, Energy and Industrial Strategy canvassed insolvency and restructuring experts this week on a possible suspension of wrongful trading laws and new measures to protect retail and hospitality groups forced to stop trading because of the government’s nationwide lockdown, according to two people familiar with the matter. The Insolvency Service, which sits inside Beis, is expected to introduce reforms rapidly. Other potential measures being discussed include a temporary moratorium for businesses undergoing a restructuring process, during which time they cannot be put into administration by creditors. The talks were first reported by Sky News. Read more