Termination Clauses and Temporary COVID-19 Relief From UK Corporate Insolvency and Governance Bill

The new Corporate Insolvency and Governance Bill will introduce new provisions to protect a company from suppliers wishing to terminate supply contracts or invoking more draconian terms when the company is entering into certain insolvency procedures, a CVA, or a new restructuring plan or moratorium (as introduced by the Bill), (each an “Insolvency Procedure”).

The purpose behind the new provisions is to maximise the possibility of a company being rescued or being able to sell its business as a going concern by helping it to trade through an Insolvency Procedure.

To read the full post by Duane Morris partner Linda Crow, please visit the Duane Morris London Blog.Corpo

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