R3 Scotland: Insolvency measures extension gives businesses time to plan
Insolvency and restructuring trade body R3 in Scotland is urging directors of COVID-hit businesses to make the most of the time granted by the Government’s extension of temporary insolvency measures to plan for the future.
The Government has announced that it will extend a number of temporary measures brought in by the Corporate Insolvency and Governance (CIG) Act, which were due to expire on April 30, until the end of June.
R3 in Scotland is calling on company directors to use this additional time to plan for when these measures and other Government support schemes end, and to seek advice about the options open to them to address their financial issues.
Tim Cooper, chair of R3 in Scotland and a partner at Addleshaw Goddard, said: “The Government’s decision to extend the temporary insolvency measures will allow more breathing space for firms that are in financial distress as a result of the pandemic.
“Directors of struggling companies should use this extra time wisely, to plan for the eventual end of these measures, and of Government support initiatives like the furlough scheme.
“We’ve been through a period of unprecedented Government support, and directors need to consider how they will manage when these measures are wound down – especially as it will take time for the business environment to return to how it was before the pandemic started.
“Now is the time for anyone with worries about their business finances to seek professional advice. Seeking this now rather than later will provide more options to deal with challenges faced by the business, and more time to decide upon and implement the most appropriate solution.”