In February 2020, the Home Office of the UK government released a policy statement noting the details of a new era of immigration to launch in the wake of Brexit. The new system, which remains encapsulated in the February 2020 policy statement, is purported to fulfill the UK Government’s commitment to “take back control of
The Government has confirmed that it will be renewing the measures it introduced protecting tenants in the commercial property sector unable to pay their rent due to the COVID-19 pandemic. Currently, commercial tenants benefit from a prohibition on landlords forfeiting commercial leases for non-payment of rent and restrictions on landlords using commercial rent arrears recovery…
The Corporate Insolvency and Governance Act 2020 (“CIGA“) ushered in a flexible restructuring compromise or arrangement for companies in financial difficulty (the “Restructuring Plan“). The legislation governing the Restructuring Plan sits alongside that for schemes of arrangement and is included in a new Part 26A to the Companies Act 2006.
The Restructuring Plan does not apply to companies that are solvent with no risk of insolvency; rather it only applies to companies where two conditions have been satisfied:
- condition A: the company has encountered, or is likely to encounter, financial difficulties that are affecting, or will or may affect, its ability to carry on business as a going concern; and
- condition B: a compromise or arrangement is proposed between the company and (a) its creditors, or any class of them; or (b) its members, or any class of them; and the purpose of the compromise or arrangement is to eliminate, reduce or prevent, or mitigate the effect of, any of those financial difficulties.
A Restructuring Plan may be proposed by the company, or its creditors, shareholders, liquidators or administrators. When the insolvency reforms were originally proposed, it was intended that the company be given exclusivity for a certain period to propose the Restructuring Plan, mirroring the position in the US; however this is not included in CIGA.
In this Blogpost, James Ferguson recaps on a recent webinar he participated in on “Arbitrating COVID-19 Contract Disputes” with his colleagues from London, Singapore, Frankfurt and Rio de Janeiro. The discussion included the key issues likely to arise in arbitrations of COVID-19 contract disputes under both common law and civil law principles. The…
On 25 June 2020, the Corporate Insolvency and Governance Bill (the “Bill”) received Royal Assent and on 26 June 2020 CIGA came into force. The restructuring team in Mayer Brown’s London office have previously commented on the different elements of the Bill in a series of blog posts and podcasts. CIGA was swiftly followed by the introduction of The Pension Protection Fund (Moratorium and Arrangements and Reconstruction for Companies in Financial Difficulty) Regulations 2020 (the “Regulations“), which came into force on 7 July and were subsequently amended yesterday on 23 July. Now that CIGA is in force, we take a closer look at the legislation from a pensions perspective.
Continue Reading The UK Corporate Insolvency and Governance Act 2020 (“CIGA”) from a Pensions Perspective
In a world where we can no longer host in person events without following all of the latest government guidelines on social distancing, use of face masks and providing a bucket-load of hand sanitizer, online learning tools such as webinars, podcasts, blogs and vlogs, are having their time in the limelight. With this new era, comes new opportunity.
When lockdown began in the UK in March 2020, like many, Nicholas Robertson hunkered down at home and quickly got to grips with various online platforms to be able to continue working effectively. Already a seasoned podcaster and producer of Mayer Brown’s UK Employment Law Podcast, on 15 April 2020 Nick was invited by the Employment Lawyers Association (“ELA”) to host an interview with Judge Shona Simon and Judge Brian Doyle, where (in under an hour) they covered the impact of the pandemic on tribunals and the Employment Appeal Tribunal (“EAT”), and the steps that were being taken to address the impact. To listen to this podcast, you can access it through the ELA website.
Why do real estate lawyers ask for deeds to be signed in “wet ink”?
The facility agreement is finally agreed. The execution versions of the ancillary documents have been deftly zipped and are ready for email circulation to the wider team. A real estate lawyer interjects that the charge needs to be executed in “wet ink” and the original document sent by post. The invariable incredulity arises as to what makes real estate different from other areas of law, requiring hard copy documents and original signatures.
The situation is even more particular on pure real estate transactions such as the sale and acquisition of property, the completion of leases, deeds and easements etc. Execution version documents, referred to as “engrossments” by real estate lawyers, are sent out in hard copy for signing in original (the part signed by seller or landlord) and counterpart (the part signed by the purchaser or tenant). A typical journey of the counterpart engrossment would take it from the hands of: (1) the seller / landlord’s solicitor, to (2) the purchaser / tenant’s solicitor, on to (3) the purchaser / tenant for signing or executing, back to (4) the purchaser / tenant’s solicitor so the document can be dated, and then finally back to (5) the seller / landlord’s solicitor to retain the document or pass it to their own client.
On Friday, 26 June 2020, the UK Government published the Third Direction, which is the legislative update for the Coronavirus Job Retention Scheme. In particular, it implements the flexible working arrangements which are permitted from 1 July 2020 under the Furlough Scheme.
We have now reviewed this Direction in full and provide a summary of…
The retail landscape was in flux even before lockdown forced all ‘non-essential’ shops to close due to COVID-19. Lockdown has only increased the growth of e-commerce as we become more and more comfortable buying almost anything online rather than in-person. The question now remains whether COVID-19 will accelerate the decline in the bricks and mortar high street and, if it does, will this result in increased demand for warehouses and ‘last-mile delivery’ options?
Continue Reading Will the Impact of COVID-19 Accelerate Changes to the Retail Landscape as our Shopping Habits are Changed for Good?
The plethora of economic policy commitments to support business in the UK and the US in the face of COVID-19 can be difficult to navigate. Our lawyers recently held a webinar in conjunction with PLI to provide an overview of the various support schemes implemented in the UK and the US, focusing on UK schemes such as the Coronavirus Business Interruption Loan Scheme (“CBILS”); UK Coronavirus Job Retention Scheme (aka Furlough Scheme); the COVID Corporate Financing Facility (“CCFF”); and on Financial Conduct Authority (“FCA”) reforms and working capital assistance for UK listed companies. It also considered emergency relief measures in the US, including the Federal Reserve’s Paycheck Protection Program Liquidity Facility.
Continue Reading COVID-19: UK and US Economic Support Mechanisms