No time for debtors' lifeline law
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• Hauliers facing financial difficulties are to be thrown a lifeline by the Government with more time to solve their cashflow problems.
Draft reforms of the Insolvency Act 1986 will include a 28-day moratorium for small firms (those with a net turnover of less than £2.8m and up to 50 employees) to help protect them from creditors' demands for payment.
This period of grace can be extended to three months if a rescue is possible.
Also included in the Insolvency Bill, currently being drafted by the Department of Trade and Industry, is a fast
track method of disqualifying directors who admit their guilt. The current procedure can take several years because it is handled by the courts.
However, the bill was not included in last month's Queen's Speech, and with no allocation of Parliamentary time it is unlikely to become law next year.