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LATEST NEWS & EVENTS Increasing insolvency regulation 'will cost businesses'  New corporate insolvency regulation will increase the cost for businesses, according to R3 and the big four accountancy firms - Deloitte, PwC, KPMG and Ernst & Young. In a joint letter to insolvency minister Ed Davey, the organisations have requested an urgent meeting to discuss government proposals that will affect companies using an insolvency lawyer. R3 President Frances Coulson said plans to give unsecured creditors more of a say in insolvency proceedings are "disproportionate" and go against government attempts to cut red tape. "The proposals are likely to reduce returns for creditors, while undermining what is good and sensible in the current system," she added. R3 and the four accountancy firms said they are concerned that the proposals will discourage creditors from engaging during the insolvency process, while inviting them to complain after a case finishes. Ms Coulson went on to say the plans "give the green light to malicious complainants to hold up the process and leave unsecured creditors with nothing". It follows concerns raised about the process of "phoenixism" in pre-pack insolvency cases, where assets are sold back to the current management. To combat this, the government is to require administrators to give notice to creditors where they propose to sell a significant proportion of the assets of a company or its business to a connected party. Posted by Paul Stevens 
Related Articles: 8/5/2012 - More companies fail as personal insolvencies fall 23/4/2012 - Landlords and insurers unite behind insolvency law reform 19/4/2012 - Enterprise Act 'does not need radical overhaul' 13/4/2012 - Retail insolvency rate up 15% as rent payments bite 28/3/2012 - Business insolvencies on the rise More Insolvency & Restructuring News |
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