Insol, the body which represents insolvency professionals internationally, has launched a project intended to allow potentially viable businesses to survive more easily. The aim of the initiative is to minimise the loss and breaking up of company assets, such as infrastructure and core groups of employees, that result from insolvency.
The main element of Insol’s proposal is to encourage creditors to allow companies whose cashflow is temporarily interrupted (possibly by short term changes in their markets) more time to recover their position. Insol is also encouraging creditors to co-ordinate their approach to insolvent companies by acting collectively.
