The eagerly anticipated Corporate Insolvency and Governance Act (CIGA) came into force on 26 June 2020, introducing the most significant changes to English insolvency law in a generation. We have explored the changes in a ‘question and answer’ format. Please click here to view the alert.
Highlights include a ‘free-standing’ moratorium, a new restructuring plan which includes a ‘cross-class cram down’ mechanism and restrictions on the ability of suppliers to rely on termination clauses triggered by counterparty insolvency.
In addition, the CIGA has introduced certain temporary measures, which seek to give businesses the flexibility and breathing space they need to continue trading through the COVID-19 pandemic.
The English courts will soon be required to explore and further define the scope and implications of the CIGA. We will be monitoring further developments closely.
The Corporate Insolvency and Governance Act (the ‘CIGA’), which came into force on 26 June 2020, introduces the most significant changes to English insolvency law in a generation. In this article, we explore those changes in a ‘question and answer’ format.