Earlier this year, the 3-year Post-Implementation Review of the Corporate Insolvency and Governance Act 2020 (CIGA) was published. The CIGA legislation was implemented with the aim to improve the tools available to help companies in distress.
However, in reviewing the three years that CIGA has been in effect, we share in the concerns of the European Association of Certified Turnaround Professionals (EACTP) that the tools are not proving as successful as the legislation intended.
As turnaround and transformation specialists, Generator is committed to delivering value preserving solutions to our clients when they experience distress, and we believe improvements can be made to the implementation of the CIGA legislation to help achieve this aim.
In addition, we share in the EACTP’s concern that Insolvency Practitioners (IPs) are the only professionals currently recognised as Moratorium Monitors. While companies in distress are often guided down the path of insolvency by the accountants and lawyers they know and trust, there is an alternative.
Generator promotes rescue and recovery options ahead of insolvency processes.
Read the EACTP’s response to the CIGA review below and contact the Generator team if you’re seeking a way out of distress that preserves value ahead of costly insolvency processes.