On March 28, 2020[1], the UK Government announced that it will introduce new legislation extending the UK’s existing restructuring and insolvency laws to include:

  • a new company moratorium to give companies a breathing space from creditors while they seek to rescue or restructure;
  • protection of supplies to enable companies to trade during the moratorium; and
  • a new restructuring plan, binding on creditors.

The Government previously consulted on these changes in 2018 (the Consultation) but did not introduce them[2]. (In the Consultation it was proposed that: the moratorium would be standalone procedure, preventing the enforcement of security, legal proceedings and creditor action; supplies would be protected by prohibiting reliance on contractual termination clauses based solely on insolvency events; and the new restructuring plan would be based upon the existing scheme of arrangement but with cross-class cram-down available as a means of binding dissenting creditors.)


Continue Reading UK Government Announces Amendments to UK Insolvency Laws to Give Companies and Directors a Breathing Space While They Explore Rescue and Restructuring Options

On Monday, 16 March 2020, the German Federal Ministry of Justice and Consumer Protection (Bundesministerium der Justiz und für Verbraucherschutz) announced that they are working on a legislative provision according to which the obligation to file for insolvency within three weeks following the occurrence of a reason for insolvency (i.e. illiquidity or over-indebtedness) would be suspended for such entities which face liquidity issues due to the Corona (COVID-19) pandemic.

Continue Reading German Federal Ministry of Justice and Consumer Protection Announced Suspension of the Obligation to File for Insolvency