Bloomsbury Professional Law Insight - Corporate Insolvency and Governance ACT 2020

Simon Beale is the Head of the insolvency practice at Mcfarlanes. He has more than 22 years' experience of advising on corporate restructuring and recovery issues.Simon acts for troubled companies, their directors and shareholders and for the major financial creditors of such entities. His clients also include distressed debt investors, insolvency officeholders and a variety of other parties with an interest, or potential interest, in the troubled company's business.Simon is the co-author of the Insolvency and Restructuring Manual published by Bloomsbury Professional.

Having gone through an accelerated parliamentary process, the Corporate Insolvency and Governance Act 2020 came into force on 26 June, 2020 having been given Royal Assent on the 25 June, 2020. It introduces the most significant changes in corporate insolvency law for nearly 20 years and has been introduced in response to COVID-19. Its main aim is to assist companies and directors by providing businesses with the flexibility and breathing space they need to continue trading during the difficult time caused by COVID-19.The key insolvency related reforms included in the Act are:- New moratorium outside of a formal insolvency process- New restructuring plan- Prohibition on issuing statutory demands and winding up petitions in connection with Covid-19 related debts- Retrospective suspension of wrongful trading- Protection of supplies of goods and services

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Chapter 1: IntroductionWHAT NEW PROVISONS HAVE BEEN INTRODUCED?WHAT HAS BEEN THE REACTION TO THE PERMANENT CHANGES?Chapter 2: MoratoriumINTRODUCTIONWHICH COMPANIES WILL BE ELIGIBLE FOR A MORATORIUM?HOW CAN A COMPANY OBTAIN A MORATORIUM?WHAT IS THE EFFECT OF A MORATORIUM?THE MONITORWHAT IS THE DURATION OF A MORATORIUM?CHALLENGES IN CONNECTION WITH A MORATORIUMINSOLVENCY PROCEDURES FOLLOWING A MORATORIUM AND SUPER-PRIORITYChapter 3: Restructuring planINTRODUCTIONWHEN WILL A COMPANY BE ELIGIBLE FOR A RESTRUCTURING PLAN?WHAT MUST A RESTUCTURING PLAN BE DESIGNED TO ACHIEVE?WHAT IS THE PROCEDURE FOR ADOPTING A RESTRUCTURING PLAN?WHICH STAKEHOLDERS VOTE ON THE RESTRUCTURING PLAN?THE CONVENING HEARINGCLASS COMPOSITION ISSUESTHE NOTICES OF MEETINGSTHE MEETINGSTHE SANCTION HEARINGTHE ORDER MADE AT THE SANCTION HEARINGFOREIGN COMPANIES AND STAKEHOLDERSPENSION SCHEMESChapter 4: Restrictions on the termination of supply contractsINTRODUCTIONTHE PRE-CIGA 2020 REGIMETHE CHANGES INTRODUCED BY CIGA 2020WHAT RESTRICTIONS WILL BE IMPOSED?HOW WILL THE NEW PROVISIONS WORK IN PRACTICE?Chapter 5: Temporary provisionsADMINISTRATION: SALES TO CONNECTED PERSONSSUSPENSION OF LIABILITY FOR WRONGFUL TRADINGSUSPENSION IN RELATION TO WINDING-UP PETITIONSREGULATIONS TO AMEND LEGISLATION