Insolvency regime needs reform, says IoD

The UK insolvency framework needs to be re-aligned to better promote the
survival of viable companies, the head of the Institute of Directors Miles
Templeman argues.

In a letter to, Templeman argues that the Chapter 11 regime in the
United States does a better job in sustaining enterprises as going concerns than
UK laws do.

Templeman points to the ability of boards to run struggling companies under
Chapter 11, in which they can pursue a re-organisation with creditors at an
early stage.

In contrast, UK companies are run by court-appointed administrators, in what
he describes as a ‘management-displacing process.’

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