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LATEST NEWS & EVENTS R3 demands corporate insolvency law reform  A reform of corporate insolvency law is urgently needed to stop the UK's rescue culture being "held to ransom" by suppliers. Insolvency trade body R3 is launching a campaign for a change in the law it claims could lead to over 2,000 more businesses being saved every year. The "Holding rescue to ransom campaign" calls for a change in legislation to prevent suppliers demanding "extortionate" ransom payments, increasing their prices or ceasing to supply as a company goes into formal corporate insolvency. R3 president Steven Law said that having to make a ransom payment prevents the chances of the firm being rescued. "In these cases suppliers are not recouping money lost; they are taking advantage to the detriment of other creditors," he explained. Mr Law added that it is unnecessary for suppliers to take this action as companies that continue to supply during insolvency have the security of being paid as an administration expense, which comes ahead of all other payments. The organisation believes that there are signs that more businesses could be heading towards insolvency this year. Its recent Business Distress Index found that 54 per cent of company owners had reported a drop in profits. Rick Munro, head of corporate recovery & insolvency at Lamport Bassitt, said: "The importance of directors taking early advice on their company's financial position could not be overstated especially where cash-flows looked challenging." Posted by Gaby Hamerton 
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