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LATEST NEWS & EVENTS R3 backs review of termination clauses  Plans to review termination clauses during corporate insolvency cases have been welcomed by R3, the Association of Business Recovery Professionals. The organisation claims that the practice of suppliers cancelling essential contracts during an insolvency results in 2,000 companies going out of business every year. R3 has a long-held stance on this issue with its Holding Rescue to Ransom campaign stopping suppliers taking what it sees as unreasonable actions during insolvency. The review of termination clauses, as well as "cram down" mechanisms that reduce the power of smaller creditors to block proposals, was suggested by employment minister Ed Davey as he announced the outcome of a consultation on a restructuring moratorium. Although it appears there is little desire for such a moratorium, he stressed that termination clauses and "cram down" mechanisms are "significant and difficult issues". Commenting, R3 president Frances Coulson said: "We estimate around 2,000 more businesses could be saved annually as a result of tackling these practices. "Maintaining a functioning insolvency regime and rescue culture is an essential part of economic growth." Posted by Alex McLean 
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