Member Article

COVID-19 insolvency measures extension, R3 response

Insolvency and restructuring trade body R3 is urging directors of COVID-hit businesses to make the most of the time granted by the Government’s extension of temporary insolvency measures to plan for the future.

The Government announced today (24 March) that it will extend a number of temporary measures brought in by the Corporate Insolvency and Governance (CIG) Act, which were due to expire on April 30, until the end of June.

R3 is calling on company directors to use this additional time to plan for when these measures and other Government support schemes end, and to seek advice about the options open to them to address their financial issues.

Eleanor Temple, chair of the insolvency and restructuring trade body R3 in Yorkshire and a barrister at Kings Chambers in Leeds of R3, said: “The Government’s decision to extend the CIG Act temporary insolvency measures will be a welcome boost for firms that are struggling as a result of the pandemic.

“It also provides directors of these firms with more time to plan for when these measures – and Government support initiatives like the furlough scheme – end, and we urge them to make the most of this.

“We’ve been through a period of unprecedented Government support, and directors need to plan for how they will manage when these measures are wound down – especially as it will take time for the business environment to return to how it was before the pandemic started.

“Now is the time for anyone with worries about their business finances to seek professional advice. Seeking this now rather than later typically provides more options to deal with challenges faced by the business, more time to decide which option is most suitable, and more time to implement the most appropriate solution.”

This was posted in Bdaily's Members' News section by Emma Kilmurray .