A CVA is one of a number of insolvency procedures designed to address a company’s financial difficulties by entering into a binding contract with its unsecured creditors, i.e. those who do not have the benefit of any security interest in the assets of the company. These are likely to include: customers, suppliers, contractors, landlords etc....
Directors need to be mindful of incurring personal liability where companies are distressed. This article provides an overview of some of the key areas where directors could incur personal liability when navigating their business through difficult times and stresses the importance of taking and following professional advice when faced with financial difficulties. ...
Covid19 Update: Redundancy and Furlough ...
The much anticipated Corporate Insolvency and Governance Bill was published on the evening of 20 May 2020.Running to 238 pages (plus 64 pages of explanatory notes) it builds......
As contractor, subcontractor or consultant, the nightmare scenario of your client/main contractor entering insolvency might be unavoidable and in a post Covid-19 world the risk is likely to be even higher. This might happen despite thorough pre-contract checks and risk protection measures....
The coronavirus pandemic has, rightly, dominated all press focus of the Government’s budgetary strategy. The Chancellor has introduced a swathe of measures to keep businesses going and the economy as far away from recession as possible. However, also included in the Chancellor’s budget last month was confirmation of the reintroduction of the Crown Preference from 1st December 2020. ...
A CVA is a contractual agreement which a company enters into with creditors, under which a company agrees to pay back, over a period of time, a percentage of the money that it owes to its creditors......
Many businesses, particularly in the hospitality and leisure sector hold business interruption insurance, under which they are insured for the losses and costs arising as a consequence of an event which gives rise to business interruption – claims in the past have typically involved damage to business property....
On 23 April, the Government announced that it was introducing new measures to protect the UK’s Retail and Business Tenants. ...
The Coronavirus Job Retention Scheme (“CJRS”) operates to reimburse employers for up to 80% (subject to a cap of £2,500 per month) of an employee’s salary. But what happens to furloughed employees if an employer enters into administration?...
On 28 March 2020, the UK Government announced that it intends to temporarily change the UK’s insolvency laws in response to COVID-19. More details are to follow in relation to the exact changes,......
It is anticipated that the Covid 19 outbreak will result in a spike insolvencies in the UK and it goes without saying that this means that a very considerable number of suppliers to companies or sole traders will have been left as unsecured creditors, likely to receive a fraction only (or nothing at all) of what they were owed for goods or services supplied. ...
Adjudication is a relatively quick and cheap way of determining a construction claim. It is temporarily binding, meaning that with limited exceptions, it will be enforced by the courts unless and until it is overturned in subsequent litigation....
There is a long history of the court supporting the enforcement of adjudication awards. Typically, summary judgment will be granted unless a lack of jurisdiction or breach of natural justice can be established. The court will not look behind the findings in the adjudication award itself. ...
This video looks at the risks surrounding insolvency in the construction supply chain. ...
There is no doubt that off-site manufacture is being embraced by the industry. The key legal issues to address in a contract where off-site manufacture is contemplated are legal ownership of the goods manufactured off-site prior to delivery and risk of damage when those goods are in storage or transit. Whilst paying for the off-site goods or materials may be necessary, it may put the purchaser/employer at risk if the supplier/contractor becomes insolvent and the goods are not then delivered. Also, who will be responsible for damage caused to the goods or materials whilst they are in storage or during transit. Another issue is quality control and monitoring progress during the manufacturing process which should be addressed in the supply contract. These risks need to be addressed when drafting the contract....
For a short time, Officeserve Technologies Limited (OTL) made a big impact in the ‘lunch at work’ market. Its director and majority shareholder, CAM, oversaw a rapid expansion to an estimated value of £40 million. However, OTL was unable to pay the instalments due on two businesses it had acquired and in October 2016 was served with a winding-up petition. ...
Clarkslegal, specialist Dispute Resolution lawyers in London, Reading and throughout the Thames Valley. ...
Companies have limited liability. Does this mean that their directors can never be liable for the acts of the companies? This was the question before the Court in Victoria Plum Limited -v- Victoria Plumbing Limited & Others. ...
Cash flow is the life blood of every construction company. Failure to manage cash flow could lead to the demise of the company, which makes getting paid quickly by clients crucial. ...