Insolvency bill extended for distressed businesses
With restrictions on statutory demands, winding up petitions extended and a new job support scheme, have ailing businesses been handed another lifeline?
Writing for AccountingWeb, BLM Head of Commercial Litigation Stuart Evans, said: “With the furlough scheme coming to an end, wage bills would increase again. Loans would have to be paid back, accrued debts, tax, national insurance and pension contributions would need to be settled, in circumstances where some businesses would have had little to no income for six months and cash has become more scarce. In addition, creditors were ready to take action to recover accruing debts. Protecting businesses in distress could not go on forever..”
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Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to clients of BLM. Specialist legal advice should always be sought in any particular case.