Speaking at the Institute for Turnaround conference on September 11, Shadow Treasury Minister Justine Greening MP committed a future Conservative government to reforms that should help prevent businesses like XL travel group collapsing into insolvency.
Ms Greening, who spoke about reforming the ‘enterprise culture,’ said that the Shadow Treasury “would work closely with the Institute, because it is the national body dedicated to turnaround and company rescue.”
The measures being examined include an automatic stay of enforcement and a debtor in possession approach, in which, Ms Greening said “new finance can be raised in exchange for priority status and so create a market for ‘rescue’ funding.”
However, Simon Mansfield of Goldman Sachs warned the turnaround experts that, “the UK economy may not hit bottom for two or three quarters.”
Institute for Turnaround Chief Executive Christine Elliott said, “Unfortunately, over the next 18 – 24 months many businesses capable of being turned around will be propelled into insolvency because of the current system’s shortcomings.
“There should be fairer consideration of all creditors’ interests, consistent with statutory priorities; appointed arbitrators to the valuation process; restricted costs to be borne by the debtor company; a stay on claims in order to create a value-creation plan, followed by a stay on implementation; recognised rights for rigorously accredited turnaround executives.”
“Now is the time to embrace collective experience and change UK legislation and practice to entrench an effective corporate turnaround culture,” said Elliott.
For further information and post conference interviews, contact:
Christine Elliott, Chief Executive firstname.lastname@example.org
Out of hours emails: email@example.com
Telephone – 020 7324 6219; Mobile – 07812 370121
Emma Taylor, Marketing Services Executive – 020 7324 6217
1.The Institute for Turnaround (IFT) is Europe’s leading professional body for the whole Turnaround Community. IFT was founded in 2000 as The Society of Turnaround Professionals. We have a membership of rigorously accredited turnaround executives and advisers, with corporate partners representing the best in law, accountancy, corporate banking and finance, private equity and other turnaround experts.
2.National Conference Theme 2008: ‘TURNAROUND! It’s a Perfect Storm
In October 1991, unprecedented set of weather circumstances in the North Atlantic turned into an epic ‘perfect storm’ that raged for six days. This year, the international credit crunch, oil shock and housing crisis foreshadow a predicted stormy autumn and bleak prognosis for the real economy.
This press release was distributed by ResponseSource Press Release Wire on behalf of Institute for Turnaround in the following categories: Business & Finance, for more information visit https://pressreleasewire.responsesource.com/about.