Key points for asset-based lenders
We explore the implications for the Act in the context of asset-based lending below. Key points to note are:
- The Act introduces a new “moratorium” procedure allowing eligible companies to continue to trade whilst being protected from creditors who may not take enforcement steps against them. The moratorium is a rescue process intended to give the company a breathing space to allow time to implement a rescue plan. It is not an insolvency process. Importantly, the directors of an eligible company can file the necessary documents required to put the company into a moratorium without giving notice to the holder of a qualifying floating charge. This is a major change, when compared with…
