Can a struggling company ever justify paying some - but not all - of its creditors?

Can a struggling company ever justify paying some - but not all - of its creditors?

What help is available for start-ups and SMEs whilst the world is on hold tackling COVID-19?

In light of the financially fragile state some businesses are finding themselves in as result of COVID-19, we discuss in this briefing note when – if ever – payments or other benefits can be given to some creditors but not others, and when such a transaction might fall foul of the unlawful preference provisions of UK insolvency legislation.

This is a fast-moving area and this briefing note sets out the position as at 8 April 2020. 

Contact our experts for further advice

View profile for David SteinbergDavid Steinberg, View profile for Yasmin CurryYasmin Curry

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