The Coronavirus (Scotland) (No.2) Act 2020 received Royal Assent on 26 May and takes effect from 27 May 2020. Here we look at some of the most significant changes it introduces.
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Futures Fund offers support for innovative businesses requiring investment – but how will it work in practice
The long awaited Futures Fund launched yesterday for applications via the British Business Bank website and is aimed at innovative UK companies with good potential that typically rely in equity investment but are currently affected by Covid-19. We have analysed the Fund and set out here what is involved for companies looking to access funds this way.
The Covid-19 crisis and the severe economic disruption caused by it has left many companies dealing with the prospect of an insolvency situation entirely outwith their control and through no fault of their own. The insolvency profession is adapting to this imminent threat and the existing (albeit relatively untapped) tool of "light touch" administration has been identified as a possible means of enabling certain companies to get through the crisis. 'Light touch' administration gives a company the benefit of a statutory moratorium from creditor action while the directors continue to exercise powers to manage the business specifically granted by the administrators.
In March 2020, the UK government signalled a shift in energy policy by announcing its intention to bring onshore wind and solar development back into the Contracts for Difference (CfD) subsidy regime. It is no surprise then that investors are attracted by the bondlike nature of these subsidised projects. The 2020s will likely see increased confidence among funders, with a resulting boost to renewable energy projects in Scotland. However, funders should be aware that there is a discrete property and security law regime in Scotland that affects what security can be obtained by Lenders. It is important that developers and funders seek expert legal advice on the quirks of the Scottish system.
Unfortunately, some tenants will be forced to consider administration as a means to salvage their business. If a tenant is in administration if affects what a landlord would otherwise do to enforce the contractual terms of a lease. Here is an overview of what landlords need to know.