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26/02/2013

Continuation of supply announcement significant win for insolvency profession

 

R3 President Lee Manning comments:


“We are delighted that the Government has tabled an amendment to the Enterprise and Regulatory Reform Bill which states that IT providers and other essential suppliers must continue to supply on insolvency and will be unable to vary their terms of supply and increase charges. R3 has been campaigning on this issue for over two years and our research reveals that more than 2,000 businesses a year could avoid closure if suppliers continued to supply at the pre-insolvency terms.


“This victory for common sense recognises that legislation has not always kept pace with changes in public utilities ownership and highlights the importance of IT when running a business in the 21st Century. Struggling businesses need a flexible and up to date insolvency regime to allow them the best chance of survival.


“This announcement comes on the back of the BIS Select Committee recommending that the Government, issue a consultation on the continuation of supply to businesses in insolvency, which we had previously welcomed.”

 

 


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.