Creditors of the Café Nero chain have been granted the right to an expedited trial to enable them to recover full compensation for unpaid rents. The case involved several commercial landlords who were challenging the validity of the way Nero had entered into a Company Voluntary Arrangement (CVA) after being adversely affected by the Covid-19
Two partners in a failed business have been told that the liquidator can call upon them to pay nearly £600,000 between them for the partnership’s liabilities and the expenses of the winding-up. The issue arose after the liquidators had applied for a call order under the Insolvency Act 1986. The order provided that the liquidators
The Government has extended its temporary insolvency measures to support businesses struggling during the pandemic. The measures were introduced in the Corporate Insolvency and Governance Act in March 2020, including protecting businesses from aggressive creditor enforcement and removing personal liability on company directors. They are being extended till the end of June 2021. The extension
While it is still too soon for any certainty and teething problems are likely to persist, it is possible to speculate and draw some current conclusions on the effect of Brexit on some areas of UK legal practice.
There has been a sudden surge in personal and corporate insolvencies, due mainly to the effects of the Covid pandemic. Figures released by the Insolvency Service show there were 1,228 business failures in December 2020 compared with 891 in November. That’s a rise of 37.8%. It’s also 9.2% higher than in December 2019, when there
The government is strengthening the Prompt Payment Code to ensure large companies pay small businesses on time. Companies that have signed up to the code will be obliged to pay invoices within 30 days – half the time outlined under the current agreement. Despite almost 3,000 companies signing the code, poor payment practices are still
Businesses struggling with debt due to the Covid-19 crisis have been given extra breathing space to help them avoid insolvency. A temporary measure introduced by the Corporate Insolvency and Governance Act restricting the use of statutory demands and winding-up petitions, which was due to expire on 31 December 2020, has been extended to the 31
The government is considering new powers to give businesses more protection against late payment of invoices. Figures provided by Pay UK show that £23.4 billion worth of late invoices are owed to small firms across Britain, impacting on their cash flow and ultimate survival. Small Business Minister Paul Scully has announced a new set of
The Treasury is introducing new rules on how businesses should construct letters sent to people in debt. The emphasis will be on helping customers to better understand and manage their debts, reducing distress and supporting mental health Default Notices are designed to give people who are falling behind on their debts fair warning before lenders
The government is extending the temporary measures it introduced to protect businesses from insolvency during the COVID-19 pandemic. The measures are contained in the Corporate Insolvency and Governance Act and were due to expire on 30 September 2020. They will now continue until the end of the year and in some cases, into next year.