Don’t turn it off — supplying services during formal insolvencies
The government has launched a consultation on its proposals to force more crucial suppliers to continue to supply their services during formal insolvencies, irrespective of any pre-existing debts.
The proposals would expand the scope of the current regime, which secures gas, water, electricity and communications services from certain suppliers, to include more suppliers and extra services. The current law dates from the 1980s. The rules prevent affected suppliers from either withdrawing their supplies or demanding ransom payments because of a customer’s insolvency. The justification for this erosion of a supplier’s freedom to contract on agreed terms is to avoid: greater pressure on an insolvent business’s finances at a critical time, ‘damaging the chances of survival by preventing funds being used to facilitate a rescue’; or certain creditors receiving preferential treatment at the expense of others, ‘obviating the basic insolvency principle of all creditors in the same class being treated equally’…
Click on the link below to read the rest of the Gateley briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Briefings from Gateley
Although a buyback can be fairly easy to effect, if the strict legal requirements are not followed you may find that the buyback did not take place at all.
After negotiations signing a contract should be easy, but sometimes the simplest things – like inserting the name of the company you are contracting with – can be problematic.
Analysis from The Lawyer
The Law Society recently published guidance to assist solicitors draw up Shariah-compliant wills, causing outrage in some quarters. Gateley’s Haroon Rashid explains the facts.