Monday, July 5, 2021
Last year, the Corporate Insolvency and Governance Act 2020 made a number of changes to the UK insolvency landscape. Amongst the changes, was the addition of the ipso facto regime, which prevents suppliers terminating supply contracts as a result of insolvency-related events. Up until 30 June 2021, small suppliers were exempt from the regime. However, now the exemption has ended, what does that mean for those suppliers that were formally exempt?
What is Ipso Facto?
Most supply contracts contain a termination clause (also known as an ipso facto clause) which, on the occurrence of an insolvency-related event, either:
automatically terminates the contract, or
entitles the supplier to …
Read the full article at: https://www.natlawreview.com/article/small-suppliers-no-longer-sheltered-uk-ipso-facto-regime