Department for Business rejects call for insolvency law change

 
The Government has rejected calls from MPs to change insolvency laws to allow payments to an insolvent company’s workers, even if self-employed, to be made before other creditors. The response came after a report by the Scottish Affairs and Business, Innovation and Skills select committees into the collapse of City Link. They said the courier company and its private equity owner, Better Capital, were “morally, if not legally, responsible” for the difficulties of thousands of former employees and small businesses. However, the Department for Business said: “If those who were self-employed were given preferential status … this would mean less money would be available for other creditors such as consumers and suppliers.” Separately, the Standard’s Rosamund Urwin calls for a law change to stop details of company collapses such as Comet’s in 2012 staying confidential.