The low down
According to the OECD, the UK economy will shrink by 11.5% this year and by as much as 14% in the event of another lockdown. Unsurprisingly, the government has rushed through legislation to avert a deluge of corporate insolvencies, pushing it through parliament in just six weeks. It moves UK law closer to Chapter 11 of the USs Bankruptcy Code, providing protection from creditors and weakening the position of dissenting creditors who could block a rescue plan to which others agree. But the supervision and professional advice needed to assert a right to greater protection from creditors are not cheap, and critics claim only bigger companies can use the new laws. Meanwhile, insolvency practitioners and lawyers warn that Brexi…
Read the full article at: https://www.lawgazette.co.uk/features/a-new-chapter-for-insolvency-law/5105600.article
