The unintended consequences of easing insolvency laws – INTHEBLACK

At a glance

• New legislation has provided struggling companies some relief from liability should they become insolvent.
• The legislation is applicable until 25 September, and it has helped guard companies during adverse business conditions.
• However, there are concerns that easing insolvency laws could have consequences such as mounting levels of debt outstanding at the time a company enters insolvency.