Changes to insolvency rules brings good news
By Colin Bell, Business Growth Director at the North East Local Enterprise Partnership (LEP)
The news that changes to the insolvency laws will be forthcoming hopefully as soon as April marks a positive step forward for businesses struggling to mitigate the impact of COVID-19.
Government had previously consulted on changes to the current corporate insolvency regime. The new legislation will implement new procedures first announced in August 2018.
According to the Government website, the new regulations will:
Provide a moratorium (breathing space) from creditors so that companies in difficulty have time to explore rescue and restructure options
Allow companies undergoing restructuring to maintain access to supplies and raw material
Relax wrongful trading rules so that business owners can make difficult decisions about the viability of their business without ‘being unduly influenced by the exceptional circumstances beyond their control’. The last point is particularly welcome as business owners need the flexibility to plan without the threat of personal liability affecting decision making
We will continue to collate at much advice and support as we can via the North East Growth Hub Coronavirus toolkit so you have access to the very latest information. We will also continue to provide direct one to one support to businesses.
Please continue to complete and share our short survey so we can understand how you’re being impacted and share this with Government.
This is helping us inform the measures put in place to build business resilience and sustainability.
In it together
The North East is known for its collaborative spirit and resilience. Please be assured the North East LEP will continue to lead from the front and share valuable information so you can do what you can to keep your business moving forward and protect employees.
Please do use the North East Growth Hub toolkit, fill in the survey, sign up to our newsletter to receive regular updates and if needed, make a one to one virtual appointment with one of our Connectors. We are here to help.