Government reforms for restructuring law
In response to this threat, the Government finally implemented reforms to restructuring law that have long been in the pipeline to maintain the position of the UK as a leading jurisdiction for restructuring.
The measures include a moratorium to protect companies from creditor action while seeking to restructure and a new restructuring plan similar to the Company Voluntary Arrangements (CVA) currently in use. The new plan has much greater flexibility than a CVA and does not carry the potential stigma of insolvency. Virgin Atlantic was the first company to use it, and more recently, the DeepOcean group, but it is equally applicable to smaller companies.