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In its Summary of Responses to the Consultation on the Continuity of Essential Supplies, the Government has announced that the supply of IT and utility services to businesses undergoing insolvency rescue will be guaranteed.
Suppliers of IT, water, gas, electricity and communications services guaranteed payment for services supplied during the rescue period will also be able to ask for personal payment guarantees from the insolvency practitioner.
These changes will be subject to Parliamentary scrutiny before coming into force in October 2015.
The Enterprise and Regulatory Reform Act 2013 brought in new powers to help insolvency practitioners secure essential IT and utility supplies needed to keep a business going while it undergoes the rescue process. By turning around struggling but viable businesses, jobs can be saved and creditors stand a better chance of recovering some of what they are owed.
The government's plans will mean suppliers are prevented from terminating a supply or increasing charges as a result of insolvency. To safeguard suppliers:
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