U.K. Introduces Insolvency Bill to Help Covid-Hit Companies

The U.K. government has introduced new insolvency legislation to help businesses that are struggling from the economic impacts of coronavirus, Bloomberg News reported. The new Corporate Insolvency and Governance Bill will create more opportunities to save companies in difficulty and offer better protection from creditors during the pandemic, according to a statement Wednesday. Under the bill, U.K. companies will have access to new tools to restructure their debt in order to keep operating through the crisis. The measures follow calls from some of the world’s largest accounting firms for more initiatives to help U.K. businesses damaged by the actions taken to stem the virus. KPMG, Deloitte and others have pushed for a short-term softening in insolvency legislation. “This will be the biggest reform of the U.K.’s restructuring and insolvency framework in more than 15 years,” said Olga Galazoula, restructuring and special situations partner at law firm Ashurst in London. Read more