UK insolvency rules must be changed to make sure London keeps its status as a
leading financial centre.
The European High Yield
Association has warned that UK insolvency legislation must be
updated to handle complex restructuring projects when the economy suffers its
next downturn, reported the FT.
In a letter to the
, the association said that the legislation must ease the power it gives to
customers and suppliers when a company enters administration, as well as taking
away the right to veto a restructuring for shareholders and creditors without an
economic interest in the deal.
It warns that a small number of banks no longer dominate the debt-funded
buy-out market, with a mass of hedge funds more influential.
‘The wider dispersion of debt may make traditional workouts unachievable,’
warned the association.
reorganisation services partner Neville Kahn previously told
Accountancy Age that hedge funds were likely to be the first creditors
to challenge administrators for selling a company using the controversial
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
Smaller businesses could be excluded from government plans for making business transactions digital, found new research from ICAEW
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Further powers are being sought by HMRC, but it is ‘failing’ to use those it already has, such as Conduct Notices, says RPC