David Fleming, Managing Director in Duff & Phelps Global Restructuring Advisory practice, recently spoke to Peer2Peer Finance News about government measures announced to support the mid-tier market during the coronavirus (COVID-19) crisis.
David commented: “There was a huge gap between those businesses with a turnover of up to GBP 45 million(mn) and the listed multi-billion-pound, credit worthy giants.” He further added, “This new initiative will see the introduction of the Coronavirus Large Business Interruption Scheme (CLBILS), ensuring a government guarantee of 80% to enable loans of up to GBP 25 mn, for firms with a turnover of between GBP 45 mn and GBP 500 mn, thus addressing what we believed was a huge funding hole for the vital mid-tier market in the UK."
In conclusion he said, “Since the outbreak of COVID-19, we are continuing to assist companies with strategies to avoid insolvency. This could be with of help of time to pay arrangements with the HM Revenue and Customs (HMRC), the coronavirus business payments support service or help and guidance on the furloughing of staff and the coronavirus job retention scheme. The challenge now for the government is the speed at which many of these schemes are implemented and how they reach UK businesses facing imminent cash flow difficulties.
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