Recent Government COVID-19 Measures to Rescue Companies and Help them Survive

In response to the economic and financial shock from the pandemic, the Government has put into place significant new measures to support companies survive and recover. The Corporate Insolvency and Governance Act 2020 (CIG Act), has introduced initiatives to help company directors and their advisers to focus on business and financial recovery.

These changes are:

  • New moratorium
  • New turnaround/restructuring plan process
  • Restrictions on termination of contracts for the supply of goods and services.
  • Restrictions on using winding-up processes
  • Temporary changes to wrongful trading rules
  • Relaxation of meetings and filing requirements to give companies greater flexibility.

A key benefit of the new moratorium procedure is that it gives businesses enhanced protection from certain creditor actions such as winding up petition, and from wrongful trading risks the directors otherwise face.

Another advantage is that the existing directors remain in control to run the business, overseen by a ‘monitor’ who is a licenced insolvency practitioner. Also, it allows the directors to choose which monitor they want to appoint and work with.

Who Is It For?

The support is intended for companies that are in trouble due to the problems caused by Covid-19. The typical characteristics of these companies are:

  • Cashflow problems caused by or exacerbated by the pandemic
  • Performing well previously
  • Viable businesses that are likely to trade successfully in future
  • Require time to recover and repay debts

The moratorium is to help turnaround the business and recover it back to profitability and healthy cashflow. It can be extended up to a year with the approval of creditors or by court order, and provide struggling businesses with much needed headroom to deliver the turnaround.

This can be successfully achieved with the help of a turnaround specialist who works alongside the directors to advise, keep the recovery on track, and make it happen.

Clarity can help you to successfully apply for and formulate a turnaround plan for your company under these new rules, and then support you to deliver it.

Contact us now for your free consultation.

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If you'd like to talk to us or discuss any of our services please call us on  07866 767967 email us contact@claritytransformation.co.uk  or book a call using the button below.

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CLIENT TESTIMONIALS

"Obi is unique combining the skills of a CEO and a CFO. Obi understands businesses and how to make them fly. He is highly intelligent, personable and achieves results. The sort of person that you want on your team."

- Justin Boyce-Cam, Partner BDO, Australia 

“He gets things done through his highly collaborative management style and with persuasive leadership. I have seen Obi inspire clinical engagement and gain buy-in from executive peers and divisional leadership teams – often in highly charged or challenging situations. He will take an integrated approach to often conflicting goals by linking finance, quality and operational priorities to deliver sustainable financial, quality and operational improvements.”

- NHS CEO  - South East 

“Obi is highly intelligent. He understands how hospitals work and this allows him to deliver results. He will gain buy in and co-operation from clinicians, finance and operations to ensure your goals are achieved. He has a wealth of experience to draw upon in order to transform services, save money and engage staff - I needed a solution rather than a series of quick short-term wins – Obi delivered this, and I would definitely engage him again if the need arose.”

- NHS CEO  - North East 

"I worked with Obi on a senior leadership project for an international hospital. It was a pleasure to work with someone who has the same strong work ethic! He was professional, extremely knowledgeable and added immense value to the project."

- Tracy Bedwell, MD of global M&D company

Obi is a person who can make a real difference through his ability to understand the key challenges involved in a turnaround or business improvement situation. He can work with stakeholders to both formulate a turnaround or improvement plan but most importantly to get buy in and actually deliver the plan. He has experience of a wide variety of industries primarily with SME's in the private sector and in the NHS in the public sector.

Stephen Burke, FD and Transformation Specialist

I have worked with Obi on a number of projects and found him to be diligent, well informed, highly experienced and able to follow through and deliver his work. I would certainly recommend him for any consulting engagements.

Jonathan Webb, CEO Clarity Associates Ltd

I have known and worked with Obi for the last ten years on a number of different projects in the NHS. All of these assignments have been complex, challenging and have required clinical, operational and financial changes to be made at pace. What sets Obi apart is his ability to take people with him through these changes and to communicate them clearly and appropriately to those impacted. The client is always disappointed when the work is complete as Obi is a joy to work with and has a passion for ensuring that the changes made are sustainable and management teams and their staff develop their capabilities/capacity along the way.

Iain Alexander - Partner, PwC, Leader Government & Health Industries Restructuring  

In these mad times it's great to find someone who can help you out of looming financial trouble so I was delighted to be introduced to Obi who brought clarity to my complex network of businesses. Once things became more settled, I expected to need to find someone else to review the growth and expansion plans for my media business, but again Obi was an invaluable consultant on a whole range of financial and business growth issues. Now pleased to work with him as our outsourced FD on contract.

Jack Chew, CEO Physio Matters, Therapy Live and Chews Health