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Introduction to this document

Corporate insolvency procedures summary

Corporate insolvency is littered with technical jargon. Use our summary table to make sense of it all.

INSOLVENCY BASICS

Most business professionals come across corporate insolvency at some point. Whether your company is facing financial difficulties or it is the creditor of such a company, use our summary as a quick guide. It covers the different procedures, how they are started, who runs them and their key features.

The government made various changes to insolvency law to help companies stay afloat during the coronavirus pandemic. One of those changes was to introduce a new insolvency procedure, a formal moratorium, to give companies some breathing space from creditor demands to take action to improve their position. Another new procedure, called a reconstruction plan, was also introduced (this is outlined in our Company Reorganisations Summary). A company in financial difficulties could use the new moratorium to take the pressure off while taking advice on and preparing a proposal for a new reconstruction plan.