Insolvency law has evolved tremendously since the Insolvency Act 1986. The revolution brought about by Sir Kenneth Cork’s Report of the Review Committee on Insolvency Law and Practice (1982) Cmnd 8558 changed the view of insolvency from the final destination for insolvent companies to one of recovery or rescue of those companies.
From two types of insolvent liquidation, to the addition of administrations and company voluntary arrangements, the choices increased vastly. Fast forward to restructuring plans introduced in 2020 (at the height of Covid) as well as moratoriums, and it could be said that insolvent companies and their advisers are really spoilt for choice.
Yet, the emphasis on company rescue rather than termination was not…