Hasty UK insolvency law ‘gives with one hand, takes away with the other’

Laura Ashley coronavirus insolvency default retail from PA 2Jul20 575x375
By Jon Hay
02 Jul 2020

The biggest reform of UK insolvency law for more than a decade was rushed through Parliament and enacted on June 26, as the coronavirus lockdown is expected to cause a wave of defaults across the economy, reports Jon Hay. The law’s complexity and the haste of its preparation have left restructuring experts chewing over many aspects where they foresee risks of unintended consequences — but also eager to try out some of the law’s new powers.

“It is a huge piece of legislation,” said Olga Galazoula, partner in the restructuring and special situations practice at UK law firm Ashurst in London. “It was announced in March and the text was published on May 20, so something that would ordinarily have taken six to nine ...

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