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To ask the Secretary of State for Business, Innovation and Skills what assessment he has made of the merits of amending section 233 of the Insolvency Act to prevent suppliers demanding payments upon insolvency where such payments make company rescue harder or reduce dividends to creditors.
The Government have previously announced that we would consider the case for updating section 233 of the Insolvency Act 1986 and the wider issue of termination clauses. We are aware of the problems that can be caused for those seeking to rescue a struggling company by such clauses. We are currently looking into the merits of any change, and have been discussing this with interested parties.