DTI officials faced further embarrassment last week over much-criticised handling of the Insolvency Bill, with the revelation in parliament that the legislation threatened multimillion pound international deals locating in the City.
Corporate and consumer affairs minister Dr Kim Howells admitted during the second reading that the Bill’s proposals to offer 28-day moratoriums on creditors’ rights endangered special purpose vehicles (SPVs) used for big City financing operations.
Insolvency experts only spotted the technical hitch at the last minute, and their representations alerted the DTI to the howling error.
Howells said: ‘In the past few days, we have received several representations about possible difficulties that the introduction of the option of a moratorium might pose for what are known as special purpose vehicles.’
Howells told parliament that the ‘sums of money involved are large,’ and said there was a risk that the ‘UK will become a less attractive place within which to base such arrangements’.
Ron Robinson, chairman of the technical committee of R3, the Association of Business Recovery Professionals and insolvency partner at Begbies Traynor, said: ‘It seems that with a week to go, someone twigged at the last minute that the Bill also covered SPVs, which are a major part of international finance strategy. This could have the frightening effect of shifting deals from London to Frankfurt.’
Insolvency Bill on collision course
The numbers you crunch tell a story. Your expertis...
24yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleGlobal spend on accountancy outsourcing up by 40% in the space of five years. News comes as accountancy outsourcing specialist AdvanceTrack reports en...
View articleFollowing a profitability review, Deloitte has decided to scale back its UK deals business due to lower returns. This strategic shift could lead to jo...
View articleUK-based Dow Schofield Watts (DSW), a mid-market professional services network, announced the creation of a new division called DSW Principal Partners...
View articleEY has been undergoing significant cost-cutting measures and streamlining its operations since the abandonment of Project Everest. The firm has made t...
View articleTransitioning from an accounting firm to a consultancy model is only one part of the puzzle. The next, equally vital piece is making the market aware ...
View articleThis framework, while providing a top-line view, underscores the importance of strategic vision, operational excellence, and the spirit of continuous ...
View articleLooking ahead, the Big 4 firms face a challenging year, with ongoing cost-of-living concerns, slow economic growth, rising geopolitical tensions, and ...
View articleLast month it was reported that Deloitte would be cutting approximately 1,200 jobs in the United States, making it the latest of the Big Four accounti...
View article