The Lex article “Insolvency Practitioners: Watchdog Wanted” (December 22) raised some important issues – not least around the vested interests of banks and HM Revenue & Customs – in the timing of insolvency proceedings.
But any new framework will also have to give the regulator the ability to dive into the intricacies of the cross-class “propulsion” provisions – especially with regard to the position of landlords who may find themselves forced to make substantial changes to the terms of their leases.
The government has undertaken welcome reforms to tackle cross-party administrations. But the sector lacks any “institutional memory” about what acceptable processes and procedures are.
Governments are always eager to point out the number of jobs saved in any restructuring. But no one measures the job losses of suppliers and other creditors – not to mention the damage to the structure of the local economy.
Lord Hodgson of Astley Abbotts
House of Lords, London SW1, United Kingdom