The effects of the Coronavirus on businesses will likely see those already struggling pushed into greater financial difficulties, and potentially insolvency.
We set out some actions you may want to consider if a contractor or supplier’s position is giving you cause for concern. Read more here.
On 26 June 2020, the Corporate Insolvency and Governance Act 2020 (CIGA 2020) significantly restricted suppliers’ rights to terminate or suspend their contracts with insolvent customers. The changes mean that some very common clauses are now unenforceable. The new law needs to be kept in mind when negotiating new contracts, as well as when enforcing or managing existing contracts. Read more here.
Coronavirus is causing disruption to international travel and shipments. Levels of consumer spending, production and investment are also down, due to virus-related risks. All of these factors adversely impact supply chains, which can result in businesses being unable to fulfil their contractual obligations. Read more here.