Corporate Insolvency and Governance Bill: permanent and temporary relief

Croner-i writer Rachel Farris FCA CTA looks at the recently released Corporate Insolvency and Governance Bill, and outlines what measures and reliefs are included to assist companies through the issues being caused by Covid-19

On 20 May 2020, the government introduced the Corporate Insolvency and Governance Bill (the bill).

The bill contains both permanent changes to insolvency law, and temporary changes to bring into law special insolvency and corporate governance measures to help companies deal with the Covid-19 crisis. As the bill has not yet been brought into law, it is possible that changes may be made to the provisions set out within it before it is passed.

The key proposed changes within the bill are as follows:

Insolvency

Permanent changes:

• a new moratorium on enforcement action;

• disapplication of supplier termination of contract provisions for insolvency; and

• a new restructuring plan process.

Temporary changes: