Changes to the UK Insolvency Regime – Ipso Facto and Termination of Supply Contracts

June 2020
Region: Europe

On Thursday 25 June 2020 the Corporate Insolvency and Governance Act (the Act) received Royal Assent. The Act makes both temporary and permanent changes to the UK insolvency laws.

As part of these measures, a new provision has been inserted into existing legislation which will curtail the ability of suppliers to terminate supply contracts when a customer becomes insolvent (the so called ‘ipso facto regime’).