A breathing space for distressed companies: proposals for a statutory restructuring moratorium

The Insolvency Service recently opened a consultation (the "Consultation") on its proposals for a restructuring moratorium. Under the proposals, eligible companies satisfying certain qualifying conditions would be able to apply to court for a moratorium to prevent creditor action (a "Moratorium"). The Moratorium is not intended to be an alternative to formal insolvency for companies that are already insolvent but is intended to support viable companies reach a compromise with their creditors. http://www.herbertsmith.com/NR/rdonlyres/A1606C03-FEAC-446A-A752-522F423726C6/0/Abreathingspacefordistressedcompaniesproposalsforastatutoryrestructuringmoratorium260.html#page=1