Launching the consultation, Edward Davey, Minister responsible for the Insolvency Service, said:
I encourage everyone with an interest in business finance and restructuring to study the proposals for a restructuring moratorium set out in this consultation. This is the time to make your views count.
Even large and otherwise successful businesses can find themselves facing temporary difficulties, for example when they have inherited very high levels of debt. These proposals are intended to help them act early to resolve problems, safeguarding jobs and promoting sustainable economic growth.
The option of applying for a restructuring moratorium would be available to companies that are seeking a contractual compromise, or are preparing a statutory compromise proposal either a Company Voluntary Arrangement or a Scheme of Arrangement. For companies that were failing or were already insolvent, existing insolvency procedures (including administration or liquidation) would continue to apply.
The consultation can be found at http://www.insolvency.gov.uk/insolvencyprofessionandlegislation/con_doc_... and invites stakeholders and other interested parties to review the proposals and respond to The Insolvency Service with any comments, which will be taken into consideration by the Minister.