R3 proposes moratorium for businesses facing insolvency

R3 proposes moratorium for businesses facing insolvency
Directors of struggling companies sometimes lack time to make considered decisions about their company’s future when facing insolvency, a report from insolvency experts R3 says. R3 is recommending a 21-day moratorium, during which creditors will be prevented from taking any action to recover their debts.

R3 is recommending the moratorium in order to counter problems caused by creditors pressuring to have a struggling company wound up, rescue deals leaving unsecured creditors out of the loop, and directors putting off seeking advice or taking action until it is too late.Under R3’s proposals:

Subscription Form

Related Articles:
Latest Articles:

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login

About the author:
Eleanor qualified in 1998 into the insolvency team at ASB law. She became a partner in 2005, and went on to head up the Recovery & Insolvency team. Whilst traditionally specialising mainly in contentious corporate insolvency matters, in recent years she has moved into the non contentious arena, in particular specialising in company administrations.