COVID-19 & Insolvency Conundrums - What You Need to Know
The raft of business support announced by the government to keep businesses afloat, during the pandemic and its aftermath, offered lifelines for companies trying to survive. On a personal level, there was protection for individuals who were struggling to pay rent, mortgages or other personal financial commitments.
But what about those who fall between the two stools of government support and protection including individuals financially supporting their businesses as directors, guarantors and shareholders?
This new virtual classroom seminar will address the situation in some detail, to enable practitioners advising both corporate entities and those supporting them to assess their exposure, and the protective measures available to mitigate that exposure.
What You Will Learn
This live and interactive session will cover the following:
- The Corporate Insolvency and Governance Act 2020 which restrains the winding-up of companies affected by COVID-19 but does not prevent the bankruptcy of guarantors for the company’s debts - what will the official attitude to guarantors of company debts be and how might the courts interpret that?
- The proposed amendments to the law in relation to bankruptcy for individuals impacted by COVID-19 - how far will they go and is it far enough or too far?
- The juxtaposition between creditor and debtor rights exacerbated by COVID-19 - removal of a creditor’s right to enforce and its circular effect
- The likely impact of COVID-19 and the challenged economy on personal insolvency law more generally, including:
- Management of bankruptcy estates containing assets
- Appropriateness of Income Payment Orders and After Acquired Assets for COVID-19 driven bankruptcies
- The expected of policies of personal lenders as to enforcement for default and parallels with enforcement of corporate lending policies
- The possibility of widespread bankruptcies for liabilities related to failed businesses
- The potential personal exposure for directors and shadow directors of business failing as a result of COVID-19:
- Wrongful trading and the impact of the temporary relief on level of damages
- Breach of directors’ duties and misfeasance
- Re-use of company names and ‘phoenixing’
- Potential protective measures open to directors of challenged businesses
Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.