§ Ms. Mowlam
To ask the Secretary of State for Trade and Industry what Government policy is on safeguarding the trading positions of companies whose parent company has collapsed.
§ Mr. Redwood
Subsidiary companies are separate legal entities and do not necessarily encounter the same difficulties as their parent company. However, there are provisions within insolvency law that enable companies in difficulty to formulate plans for a return to solvency. These provisions are available to all types of companies, including subisidiaries.