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Throughout June, the Firm’s Re-structuring and Insolvency Team are reviewing the potential impact of the Corporate Insolvency and Governance Bill.  Introduced in the House of Commons on 20 May 2020, the Bill offers struggling businesses a formal breathing space to pursue a rescue plan.

In our article entitled The Corporate Insolvency and Governance Bill - Moratorium Process, we reviewed the process whereby Company Directors can apply for a moratorium to prevent creditors from taking legal action against the company for a set period of time. 

This latest article in our series on the Corporate Insolvency and Governance Bill relates to the already well-publicised relaxation of liability for ‘wrongful trading’. For those less familiar with the concept of wrongful trading we have set out a summary herein so that the relaxation is given its context. For those already familiar with the wrongful trading rules, they may consider skipping ahead to the analysis later in this article.

Throughout June our Restructuring and Insolvency Team are looking at the potential impact of the Corporate Insolvency and Governance Bill.  This article looks at the Moratorium Procedure introduced by the Bill.

Insolvency law in the UK is largely built on a system of creditor led procedure with creditors having the power to instigate insolvency process and to approve procedures proposed by the company or its directors. The Bill seeks to introduce new measures that will be driven by the debtor company rather than its creditors.   

The Scottish Government has today announced that its Help to Buy Scheme, which was due to end in March 2021, will be extended to March 2022 to reflect the fact that homebuyers have not been able to make use of the scheme during the Covid 19 pandemic.

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COVID-19 has affected every sector of business, not least the construction sector. The delay and then recommencement of construction projects is fraught with difficulties and we know this is going to give rise to serious differences between Employer and Contractor (and Contractor/Sub-Contractor), not least of which being disputed applications for extensions of time, loss and expense or potentially claims for liquidated damages.

Do you know who inherits your estate if you don’t have a Will? 

Many people don’t know the answer to this question.  A common misconception is that a surviving spouse or civil partner would inherit everything.  Currently, this is not necessarily the case.

In 2015, the Scottish Government conducted a Consultation into the law that applies when someone dies “intestate” (ie. without a Will).  Following this, the Scottish Government acknowledged the law in this area needs updating, since the “make-up of families in Scotland is vastly different today than it was when these laws were passed”. 

Throughout June our Restructuring and Insolvency Team are looking at the potential impact of the Corporate Insolvency and Governance Bill.  This article kicks off examination of the provisions that have been tabled in respect of termination clauses in supply contracts. Update: Since the Bill became law on 26 June 2020 the exclusion for small suppliers has been extended to 30 September 2020

We will be issuing further guidance in due course on the practical issues these provisions entail specifically for suppliers, for companies/directors, and for insolvency practitioners.

Introduction/Background

The majority of commercial leases in Scotland incorporate provisions entitling the Landlord to terminate a Lease in the case of Tenant breach.  Irritancy clauses, as they are known, entitle a Landlord to take steps to regain possession and reclaim rent and other monetary arrears including interest within a relatively short period of time. 

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