The government has heralded the bill as the beginning of its implementation of the rescue culture, hoping to make legislation more like the US, particularly in the field of insolvency.
But one of the bill’s central tenets – abolition of receivership in favour of administration – has been hailed as doing nothing to ease the pressure exerted by banks calling time on companies.
Roger Oldfield, president of R3, the professional body for insolvency practitioners, said: ‘The bill’s provisions will make the banks secure in the knowledge that abolition of receivership in favour of administration will lead to no real diminution of their rights as secured creditors.’
But insolvency practitioners are not entirely satisfied the bill will encourage more entrepreneurship. Many disagree with its proposals, particularly in legislation on discharged bankrupts, the removal of administrative receivership and the treatment of disqualified directors.
Experts believe the lack of clarity in some areas, including administration, means additional proposals will have to be passed after the bill is published.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children