UK Turnaround – Safe Harbour: Could Australia’s new insolvency legislation be a model for the UK?
UK turnaround is a hot topic. The safe harbour directors protection is a new Australian concept. According to research published in October 2010 comparing procedures in the UK, The Netherlands, Germany and Italy for restructuring insolvent companies:
“The UK has a cultural, legal and professional environment that is highly supportive of reconstruction and turnaround. The UK system offers a wide range of legal routes available, with courts acting flexibly.”
In May 2016, the UK Government launched a three-month consultation on revisions to the insolvency regulations, including proposals for a three-month moratorium before creditors could take enforcement action, measures to protect essential supplies so that businesses could continue trading and prevent them from being “held hostage” by suppliers and a mechanism preventing both secured and unsecured creditors from dissenting to a proposed rescue plan.