https://www.thorntons-law.co.uk/knowledge/new-law-can-force-suppliers-to-continue-supplying-insolvent-companies
It stops suppliers refusing to continue to supply or refusing to supply unless arrears are met...................The new provisions, set out in Clause 12 of the Bill, essentially prohibit the enforcement of termination clauses triggered by insolvency. This means that suppliers will be compelled to continue to supply, even where there are pre-insolvency arrears.
What? Not clear what's meant here.
If you are having trouble paying creditors and are going bankrupt then suppliers can now be forced to continue goods deliveries without cash-up-front.
Quote from: mk1 on July 05, 2020, 09: PM
https://www.thorntons-law.co.uk/knowledge/new-law-can-force-suppliers-to-continue-supplying-insolvent-companies
It stops suppliers refusing to continue to supply or refusing to supply unless arrears are met...................The new provisions, set out in Clause 12 of the Bill, essentially prohibit the enforcement of termination clauses triggered by insolvency. This means that suppliers will be compelled to continue to supply, even where there are pre-insolvency arrears.
I would expect most businesses these days to do some due diligence and check companies house etc before granting any form of credit- C and M are well known and anyone local can quickly read about their business practices.
'triggered by insolvency'.....so if a company is solvent, like most companies, they'll have to cough up...?