Insolvency: How Supply Contracts Just Got A Whole Lot Harder To Terminate

• Published date: 03 July 2020
• Subject Matter: Corporate/Commercial Law, Insolvency/Bankruptcy/Re-structuring, Insolvency/Bankruptcy, Contracts and Commercial Law
• Law Firm: Gowling WLG
• Author: Mr David Lowe, Julian C. Pallett, Tom Stockley and Stephan Smoktunowicz

On 26 June 2020, the Corporate Insolvency and Governance Act¹ (the Act) came into force.

The Act has significant implications for supply contracts as it will prevent many suppliers ending existing contracts once a business is insolvent. The Act will make a big impact on existing supply contracts, and will also affect the drafting and negotiation of new contracts.

In our briefing note 'Corporate Insolvency and Governance Act 2000: How do the new protection of supplies of goods and services provisions work', we look at the measures in the Act dealing with the new provisions to protect supplies of goods and services and provide more information on how they work, including:

• when the provisions apply;
• what types of contracts they apply to;
• what happens to contracts to which the provisions apply;
• what relief is available to suppliers; and
• temporary...