Of the many negative effects of the global economic and financial crisis caused by Covid, one not frequently considered is the inability of companies to meet their obligations to both their suppliers and their staff. The legal consequence of this is that companies are forced into insolvency.
As it is common practice under insolvency, when a company cannot pay its debts, any creditor having a claim against it over a certain threshold is entitled to move to court and file and or initiate insolvency proceedings in order to recover part or all of the debt from the remaining assets.
