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Part 10 of the Enterprise Act changes insolvency law by providing a new regime for corporate insolvency and restricting the future use of administrative receivership. It abolishes Crown preference, introduce new provisions affecting personal insolvency and make changes to the operation of the Insolvency Service.
The Act reforms corporate insolvency even more radically than the Insolvency Act 1986 by shifting the economic objective of the insolvency remedy from the protection of the interests of debenture holders to those of the company itself and its unsecured creditors. All insolvency practitioners, whether LIPs or lawyers advising them, need to understand the legal changes and their practical effects.
Insolvency and the Enterprise Act 2002 provides a detailed commentary on Part 10 of the Enterprise Act and all of its implications.