Coronavirus and Insolvency

Various new sources reported on Saturday 27^th March that the Insolvency Service, which sits within the Department for Business, Energy and Industrial Strategy (BEIS), has begun canvassing views among restructuring professionals about urgent changes to company legislation.

The reforms, which would be implemented through emergency laws, could include a moratorium on winding-up petitions against companies, and suspending rules on wrongful trading in order to afford more protections for directors.

ASE Plc Comment:

The majority of businesses are trying to juggle seemingly impossible cash demands of staff, suppliers and services without an income source. At the best deferment and postponement of payments due give the business time to readdress its priorities in order to try to survive in the best interests of all its stakeholders.

Good businesses need time to address the issues they face without the immediacy of hasty actions that will simply damage and ultimately destroy the overall economy in the longer term.

Such proposals that may be forthcoming will be extremely welcome news for all businesses.

In case of any questions please contact at Chris.Cummings@ase-global.com 
Tel: 44 (0)161 493 1930