The height of a global pandemic may not seem like a particularly propitious time to roll out a transformative piece of corporate legislation, but in June 2020 the UK’s Corporate Insolvency and Governance Act (CIGA) came into force.
The Insolvency Service described it as the most significant change to the UK’s corporate insolvency regime in more than 20 years.
And one of its key provisions was the introduction of the new role of a monitor to oversee a corporate moratorium: an extendable, 20-working-day period giving businesses protection from creditor action – unless they have the permission of the court – while the business seeks professional restructuring advice.
CIGA gives companies time to present a restructuring plan to stakeholders
Andrew Wollaston, EY
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