HSBC in insolvency rights row.
A leading bank has voiced its opposition to banks losing their right to appoint receivers after insolvency practitioners proposed they should be removed entirely, writes Adriana Zea.
Tony Kirkby, of banking giant HSBC Bank, said parties involved in a crisis would be faced with time and money constraints while creditors would lose guarantees of a proper administration. He was speaking at a symposium by recovery professionals’ body R3 where opinions had been expressed that banks should lose all rights to veto Court-appointed receivers.
R3 called the conference to discuss the government’s company rescue mechanisms, which they believe have not been addressed in the 2000 Insolvency Act.
Not all banks argued against – one said foregoing the right would ‘only cause minor inconvenience.’