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Light Touch Administrations: A Silver Bullet, or a Live Hand Grenade?
Ali Tabari, Barrister and Mediator, and Raghav Trivedi, Second Six Barrister, St Philips Chambers, Birmingham, UKSynopsis
In the frantic search for solutions to the ongoing financial catastrophe caused by COVID-19, the restructuring and insolvency industry has recently focussed on the benefits of a 'light touch administration' ('LTA'), a little-used facet of the administration regime which has seemingly come into fashion. This article explores what the LTA is, what it is suitable for, and what the risks are for insolvency practitioners ('IPs') and directors alike; it also sets out some practical considerations for all those looking to explore whether a LTA is appropriate for their circumstances.
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