BIS has launched a consultation on whether the UKs insolvency regime needs updating following a flurry of recent corporate failures and an increasing European focus on providing businesses with the tools to facilitate company rescue.
The consultation explores four broad areas for reform. Core to this is introducing a moratorium for distressed businesses to benefit from protection against legal action while considering their options for rescue.
The government department is also seeking to widen the definition of essential supplies, with appropriate safeguards for suppliers; develop a new restructuring plan to increase the options available to rescue businesses and increase the availability of rescue finance.
The proposed moratorium wou…
Read the full article at: http://www.accountancyage.com/2016/05/26/bis-launches-insolvency-consultation/