Yesterday, on 6th April, the Industrial & Provident Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014 (SI 2014/229) came into force.
This statutory instrument plugs a yawning gap in the legislation that had previously left credit unions that were struggling financially with few options. Now they can access the UK’s administration and Company Voluntary Arrangement (CVA) legislation, giving them the same options as most companies.
Paul Brindley says ‘this is good news for insolvent credit unions- no longer are they restricted to the more brutal formal insolvency procedures such as insolvent liquidation: it must be in everyone’s interest to use the more positive rescue techniques of administration or CVA to save something of all the good work unions do’ .
Paul was appointed liquidator of South Warwickshire Credit Union in April 2014, twelve months before this instrument was enacted.