The businesses which are facing insolvency due to COVID-19, are expected to receive a support package to be introduced by the government in Parliament today. The Bill makes changes to the Companies Act to help businesses facing insolvency due to COVID-19 to remain viable by:
- placing existing debt into hibernation until they can start trading normally again;
- providing temporary relief for companies and other entities;
- giving directors of companies facing significant liquidity problems due to COVID-19 confidence they can keep trading by providing a ‘safe harbour’ for their insolvency-related duties under the Companies Act.