The Government is consulting on its review of the corporate insolvency framework. Whilst I agree there is merit in the idea of encouraging business rescue I also agree with Philip King, Chief Executive of the Chartered Institute of Credit Management (CICM) that " is naïve to think that the system will not be open to further abuse by unscrupulous directors without adequate or appropriate oversight. The challenge will be in ensuring that such oversight is rigorously monitored and the process sufficiently transparent.”

One of my other major concerns is that for creditors to object to the moratorium this must be done after it has been approved, within the first 28 days, and will involve an application to Court thus costing creditors time and money when they are already concerned whether their original debt will be repaid. 

The consultation is open until 6 July 2016.