How can the State aid rules be applied in light of the coronavirus outbreak?
The coronavirus outbreak has seen State support being given to businesses on an unprecedented scale.
This issue is likely to be increasingly relevant as Governments seek to protect and stimulate their economies as they emerge from lockdown.
How have the rules been relaxed in the context of the crisis and what facets of the existing law can be used for the State to provide support to undertakings?
Related FAQs
There is not currently a requirement for MHFAs to be DBS checked.
Partner at Ward Hadaway Adrian Ballam talks to corporate finance expert and CBILS specialist Chris Silverwood (CorpFin and cashflow.co.uk) to explore the practical ins, outs, dos and don’ts of CBILS applications, answering the questions:
- How are banks making their assessments of whether a business can afford a CBILS loan when for many they cannot accurately forecast their revenues for at least the next three months?
- What are the red flags that banks are looking for when assessing whether or not to grant a request for a CBILS loan?
- What cost mitigation measures should a business have already implemented prior to applying for a CBILS loan?
- What level of information should a business provide to support a CBILS application?
- What common mistakes are businesses making when applying for funding?
- What general tips do you have for businesses seeking CBILS funding?
Click read more to view the video.
The outbreak is certainly going to have an impact on new lease negotiations.
Undoubtedly many transactions will be put on hold or indeed stop entirely. Where matters are ongoing, tenants may well look to strengthen rent suspension provision.
It is also possible that tenants and their representatives will also now seek to include termination rights for unseen events. In this regard, the concept of force majeure may start to appear more often in leases.
In both of the examples above, such attempts are not likely to be well received from landlords who will undoubtedly suggest that tenants ensure that their business interruption insurance policies are robust enough to protect the tenant in the event of any future pandemic events.
Another approach tenants might adopt going forwards in negotiations for a new lease (or indeed seeking to vary existing leases), is to move away from the traditional market rent model to a turnover rent arrangement. This will offer some protection going forward if trading conditions deteriorate, but again getting institutional landlords to agree such an approach may prove difficult.
Once the collective process concludes, an employer can make the decision to proceed with the restructure. They will then have 1-on-1 meetings with employees about the impact of the restructure on them. This will include consideration of alternative employment. There is no need to consult further about the proposal, merely the effect of the restructure on the individual.
Civil Court listing priorities, last updated by HMCTS on 24 April 2020, categorise the Court’s work into the following:
Priority 1 – work that must be done: this includes any applications in cases listed for trial in the next 3 months, any applications where there is a substantial hearing listed in the next month, all multi-track hearings where parties agree that it is urgent (subject to triage).
Priority 2 – work that could be done: Infant and Protected Party approvals, Applications for interim payments in multi-track / personal injury / clinical negligence cases, Applications to set aside Judgment in default, Preliminary Assessment of costs.
The full guidance can be found at: