State now drafts law to unlock funding to bankrupt companies

The Insolvency Act, 2015 gives financially-distressed firms a chance to be rescued. FILE PHOTO | NMG

New loans advanced to firms in distress will be cleared ahead of other obligations, new Bill proposes, as the State moves to encourage lending to insolvent firms.

The Statute Law (Miscellaneous Amendment) Bill 2019 wants debts contracted during the time a troubled company is under administration to be treated as priority payment ahead of pre-existing liabilities.

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