Monday 2 August 2010

UK: Insolvency Service consults on proposal for a restructuring moratorium

The Insolvency Service is consulting on a proposal to introduce a restructuring moratorium for companies: see here (pdf). According to the consultation paper:

The moratorium is intended to help companies where the core business is viable but, in order to avoid the prospect of future financial distress or even insolvency, there is nevertheless the need to reach some form of compromise or restructuring. It would provide those companies with the option of a protected breathing space, during which a restructuring could be negotiated and agreed".

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