The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
This Practice Note gives some guidance on trading with a company that is in a formal insolvency process, such as administration or liquidation of a company voluntary arrangement (CVA). However, for more detailed discussion and guidance on this subject you may wish to refer to the following notes:
A creditor’s guide to dealing with a company in financial difficulty
Dealing with suppliers, customers and ROT claims
Factors the court will take into account when deciding whether to lift or impose a liquidation stay
The moratorium in administration
This Practice Note does not cover the position of landlords, or of directors' personal responsibility during this trading period. For guidance on these issues see Practice Notes: CVAs—landlord issues and remedies and Directors’ duties: companies in financial difficulties.
One point to note is that in an administration, administrative receivership or a liquidation, a supplier will be dealing with the office-holder in any agreement going forward. In a CVA the directors will remain in control and will be the liaison point for the supplier.
Once a company has entered a formal insolvency process, anyone supplying goods or services to the company should review their terms and conditions with the insolvent company in order to ensure they are protected as far as possible, and to maximise their position in the circumstances. There may
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234