R3 Moratorium Proposal April 2016

The UK’s insolvency regime is effective but has an important capability gap: there is no breathing space from creditor pressure that allows directors of struggling companies the opportunity to consider their options and take difficult decisions without risking a calamitous collapse of the company’s supply chain and increased pressure on cash flow, both of which could hasten the onset of formal insolvency. Filling this gap could help save more businesses and consequently return more money to creditors.