Market report: insolvency and restructuring
New legislation is in place that has torn up the rulebook for restructuring and insolvency to help UK Plc weather the crisis. IHL looks at the new regime and how in-house counsel can handle the worst.
‘We are on the threshold of what is going to be the biggest restructuring challenge in the history of insolvency. Nothing will have come close’. So says Mark Phillips QC of South Square Chambers on the Corporate Governance and Insolvency Act 2020, passed in June 2020 at the height of the Covid-19 crisis. The legislation’s stated purpose is to give companies affected by the lockdown and the potential fallout from the UK’s exit deal – or lack of one – with the European Union the breathing space and tools needed to survive a mounting debt or liquidity crisis.
