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Administrations to the Rescue: How Can the UK Insolvency Regime Help Save Businesses and Save Jobs

The ILA Technical Committee, in conjunction with the CLLS, has produced the attached briefing note that reminds practitioners and businesses of the flexibility of a UK administration to stabilise, protect, and, if necessary, restructure companies.

It is vitally important, as businesses across the UK battle the enormous challenges posed by the COVID 19 crisis, that we remember that England has some of the most flexible and adaptable corporate restructuring processes anywhere in the world. In the decade since the financial crisis, lawyers and their clients have become used to resorting to the administration procedure only when other efforts to restructure have failed.

There is a danger, therefore, that the narrative in the broadcast and press media, and among directors around the country, becomes that filing for administration inevitably means collapse and that, somehow, the US chapter 11 process is a better restructuring tool. Yet this fundamentally ignores the flexibility to mobilise administration to stabilise, protect, and, if necessary, restructure companies. The purpose of this brief note is to remind all, how administration can be used in this way.

© Copyright 2020 Squire Patton Boggs (US) LLP

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About this Author

Professional Support Lawyer

Rachael is the professional support lawyer for the Restructuring & Insolvency team, based in Leeds and responsible for providing training, support and updates to all UK offices and working with international colleagues to deliver legal knowledge and know-how to clients and contacts.

Rachael has over 10 years’ experience working as a senior associate in the corporate recovery market and has a wealth of experience working with accountants, insolvency practitioners, banks and directors in the region and nationally on transactional and restructuring matters.

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