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11/05/2011

Ministerial statement: Consultation on proposals for a restructuring moratorium

R3 President, Frances Coulson commented:

“While examining proposals for a restructuring moratorium in CVAs, the news that Government will now tackle the issue of termination clauses - whereby suppliers can cancel essential contracts on insolvency - is extremely welcome.

“R3, the insolvency trade body, has been campaigning vigorously on this issue as part of its ‘Holding Rescue to Ransom’ campaign to stop suppliers taking unreasonable actions during an insolvency, thus sabotaging any potential rescue. We estimate around 2,000 more businesses could be saved annually as a result of tackling these practices, as well as preserving more jobs and boosting returns to creditors. Maintaining a functioning insolvency regime and rescue culture is an essential part of economic growth.

“R3 looks forward to contributing to further discussions following today’s announcement, and building on support already shown from some MPs and business organisations.”


R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.