LMA Welcomes Consultation on Changes to UK Corporate Insolvency Law
Following the Chancellor’s announcement in the 2009 Budget statement on possible changes to corporate insolvency law, the Loan Market Association (LMA) welcomes the proposal that the Insolvency Service will be issuing a consultation in June, and will be actively engaging in the consultation process on behalf of its members.
The LMA’s working party on insolvency is currently considering ways of improving insolvency regimes by examining lenders’ issues while remaining cognisant of the need to achieve a balanced, fair and economically viable outcome for all parties. This work is not merely focused on the UK regime, but is seeking to provide a model that can be applied to a wider range of jurisdictions and thereby promote liquidity across the region.
John Redding, portfolio manager, Eaton Vance Management and chair of the LMA’s Insolvency Priority Group, said: “Potential change to the insolvency regime is a very pertinent issue at this time and one in which the LMA is actively engaged in looking to assist in reaching an outcome which is of benefit to all stakeholders.”