The legislation has introduced new corporate restructuring tools and temporary easements, with the aim of giving distressed businesses the breathing space they need to get advice and seek a rescue.
One of its key provisions is the introduction of the new role of a monitor to oversee the corporate moratorium it introduces an extendable 20 working day period giving businesses protection from creditor action while they seek professional restructuring advice.
A monitor must be a licenced insolvency practitioner and the Insolvency Service has provided guidance on their role and responsibilities.
The Act also extends the suspension of termination clauses when a company enters into an insolvency procedure and introduces a new restructuring pl…
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