Corporate Insolvency & Governance Act 2020 and beyond

CIGA bitesize: Covid-19 measures extended

On 24 September 2020 Chancellor Rishi Sunak announced that the government would be exercising powers reserved under CIGA to extend certain of its temporary provisions, amongst a raft of other government support for businesses affected by Covid-19 , on the basis that existing measures to combat the pandemic will be required for much longer than first anticipated in March.

CIGA bitesize: Changes to antecedent transactions for companies wound up on Covid-19 petitions

As widely reported earlier in the year, the Corporate Insolvency & Governance Act 2020 (CIGA) included provisions tightly restricting (although not prohibiting) their use during the initial phase of the Covid-19 pandemic.

CIGA bitesize: Ending a moratorium

The new standalone moratorium process, once commenced , initially lasts for 20 business days and can be extended by various means up to a year.

CIGA bitesize: Extending a moratorium

The moratorium introduced by the Corporate Insolvency and Governance Act 2020 (CIGA), as described in our earlier article, is for an “initial period” of 20 business days. There are five ways in which this can be extended set out in the new ss A10-A15 of the Insolvency Act 1986 (IA)

CIGA bitesize: Obtaining a moratorium

The Corporate Insolvency & Governance Act 2020 (CIGA) introduced a free-standing moratorium process which provides companies facing financial difficulties (but which are likely to be rescued) a statutory breathing space from creditor pressure for up to 12 months.

CIGA bitesize: Restructuring Plan – a tool fit for the mid-market?

Among its other innovations, the Corporate Insolvency & Governance Act 2020 (CIGA) introduced the restructuring plan into the Companies Act 2006. As a “debtor in possession” process it is likely to have less stigma and will have obvious attractions to effect a restructuring without a formal insolvency process.

CIGA bitesize: Claims for wrongful trading in the COVID-19 period

When the Corporate Insolvency and Governance Act 2020 (CIGA) was passed at the end of June, it became clear that the government’s initial announcements that the threat of wrongful trading would be removed altogether would not exactly be the case – so what changed, and how would a new claim be brought?

CIGA bitesize: Protected supplies made in an insolvency process: tips for suppliers and IPs

Many suppliers are alarmed at the prospect of being required to continue to supply an insolvent entity pursuant to the new s.233B IA 1986 (as introduced by s14 of CIGA), particularly if already owed significant arrears.

CIGA bitesize: How do you identify if an insolvency procedure has been triggered?

The Corporate Insolvency & Governance Act 2020 (CIGA) has widened the circumstances in which suppliers can be prevented from terminating their supply of goods and/or services to a company in distress, as well as introducing two new restructuring and insolvency processes in the moratorium and restructuring plan.

CIGA bitesize: Termination of supplies: are your supplies essential or protected, or both?

With a view to supporting business rescue, the Corporate Insolvency & Governance Act 2020 (CIGA) introduced s.233B to the Insolvency Act 1986 (IA), which widens the circumstances in which suppliers can be prevented from terminating their supply of goods and/or services to a company in distress, or making the terms of that supply more onerous as a result of its insolvency or restructuring.