Quadrant Chambers held a webinar, chaired by former Chief Bankruptcy Registrar, and now Deputy Insolvency and Companies Court Judge, Stephen Baister, which will consider the implications of the UK Corporate Insolvency and Governance Act 2020 (“CIGA”) for commercial litigators.
CIGA came into force on 26 June 2020, and it introduced significant changes in English corporate insolvency law that every commercial litigator needs to know about. Among other matters:
- It restricts the rights of a party to terminate a contract for the supply of goods and services in the event of counterparty insolvency.
- It provides for the directors of an insolvent company to place it into a new moratorium procedure thereby prohibiting proceedings against the company and its assets and preventing any steps to “crystallise” floating charges. Moreover, the directors remain in control of the company during the moratorium.
- It temporarily suspends the efficacy and potency of statutory demands, and restricts the circumstances in which an insolvent counterparty can be wound up.
Jeremy Richmond QC, Nicola Allsop and Emily Saunderson explain the key changes introduced by CIGA and answer your questions on the new Act.