Review of Company Rescue Mechanisms
Forward by the Right Honourable Stephen Byers MP, Secretary of State for Trade and Industry.
I have already announced that, as soon as parliamentary time allows, it is our intention to introduce legislation to provide for a moratorium to be part of the company voluntary arrangement (CVA) procedure. Such a moratorium has long been identified as a missing element that has restricted the use of CVAs.
The further development of a rescue culture is however something which needs to be kept under active consideration. That is why the Chancellor of the Exchequer and I have been so keen to ensure that this current review of Company Rescue Mechanisms undertakes a thorough examination of the issues involved and reaches robust conclusions.
A very important part of that process is seeking the views of those whose professional, commercial and academic expertise can inform the debate in what is a highly technical and very complex area of the law.
This document provides an analysis of the issues involved but, whilst it offers a range of possible outcomes, it does not reach any conclusions. I very much hope that you will respond to this invitation to let the review team have the benefit of your views so that they can be fully considered in reaching conclusions and framing recommendations.
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