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Cameron To Call For Bankruptcy Help

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US-style bankruptcy protection should be introduced for companies at risk of being destroyed by the credit crunch, David Cameron will argue.

The Tory leader is to warn that tens of thousands of jobs could be lost unless fundamentally sound businesses are given "breathing space" to establish new finance.

He will call for a British version of the American "Chapter 11" system, where struggling firms are given court protection while they try to hammer out a deal with creditors.

In a speech to the CBI in London, Mr Cameron will say: "The credit crunch has meant more companies are finding it hard to get the money they need to keep their business alive.

"That means one thing - more companies going into liquidation. And we all know what liquidation means - job losses."

He will add: "This change will ensure that fewer good companies end up in liquidation - and fewer people lose their jobs through no fault of their own."

Companies filing for Chapter 11 in the US retain control of their assets and day-to-day operations while negotiations take place in the Bankruptcy Court.

The Tories say similar restructuring deals are done regularly in the UK, but they are very difficult and inefficient due to a lack of established rules and procedures.

Any significant shareholder can hold the firm "to ransom" because consensus is needed, and failure means administration or liquidation.

Under the Conservative plans, courts could grant protection to a UK business that was unable to meet its debts, but had a "real chance" of restructuring successfully.

Link : http://www.chesterchronicle.co.uk/chester-...59067-21339952/

A positive idea, we want to support British companies and jobs.

I do not want any more foreign buyouts.

Idea should not apply to any service, Estate agents, banks and financiers

Only for companies that produce real things! (not house's)

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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