Corporate Insolvency and Governance Bill – major insolvency reforms proposed

The Government on 20 May 2020 published the Corporate Insolvency and Governance Bill, which contains the most far-reaching reforms to UK insolvency law in over 30 years. The Bill has been introduced on an emergency basis in an attempt to ensure that otherwise financially viable companies survive during a period of unprecedented interruption and turmoil.

As well as introducing a new free-standing moratorium procedure, giving a payment holiday in respect of most pre-moratorium debts, the proposed reforms include dramatic restrictions on the circumstances in which creditors can wind up a company for non-payment of debts, as well as on suppliers' abilities to terminate supply following the customer's entry into an insolvency procedure.

For more information, see our Restructuring, Turnaround and Insolvency team's e-bulletin.