Clients who are owed money under supply contracts may no longer be entitled to rely on clauses that provide for termination on an insolvency event, thanks to new legislation being introduced by the UK government. They should consider carefully how to manage contractual risk.
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This Bill will do this through: introducing a new moratorium to give companies breathing space from their creditors while they seek a rescue prohibit termination clauses that engage on insolvency, preventing suppliers from ceasing their supply or asking for additional payments while a company is going through a rescue process introducing a new restructuring plan that will bind creditors to it
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