Emma Simmonds Quoted in Law360 on UK’s New Insolvency Reforms
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Akin Gump financial restructuring partner Emma Simmonds has been quoted in the Law360 article “UK’s Move Closer To US Insolvency Law Slow To Play Out.” The article reports on how long-awaited reforms to the United Kingdom’s bankruptcy process that were introduced last June remain largely untested many months later.
According to Law360, the Corporate Insolvency and Governance Act (CIGA), was introduced mostly to boost the U.K.’s international ranking, particularly against the chapter 11 bankruptcy in the United States. There was also a push, the article says, to modernize the U.K.’s insolvency process under the EU restructuring directive.
“The introduction of the restructuring plan, and the other CIGA measures, is the biggest change that we’ve seen in the restructuring landscape in over 15 years," said Simmonds.
Law360 reports that the law includes the temporary removal of a landlord’s right to evict commercial tenants for not paying their rent. It also paused winding up petitions if a company’s financial difficulties are related to the pandemic.
Commented Simmonds, “If you’re a creditor, it’s likely to be very hard to prove that the company’s financial difficulties have not been caused by the pandemic, because the effects of it have just been so far-reaching. It’s a very high hurdle.”
