Chloe Shuffrey discusses ‘light touch’ administration as a rescue tool during the pandemic, in an article written for the New Law Journal and published on 15 May 2020.
On the 28 March 2020, the Department for Business, Energy, and Industrial Strategy announced a series of insolvency legislation reforms including a new court based restructing tool modelled on the Scheme of Arrangement and a short business moratorium to protect companies facing the prospect of insolvency as a result of the Covid-19 crisis.
In the meantime, the insolvency profession has been gearing up to adapt the insolvency tools we currently have to meet the crisis, and in particular advocating the ‘light touch’ administration (currently being trialled by Debenhams, among others), whereby the administrators leave certain management powers and, essentially, the day-to-day running of the business with directors whilst they focus on devising a strategy to preserve the long-term viability of the company
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