BUSINESSES in Bolton experiencing financial difficulties will have more chance of survival as a result of the Enterprise Act 2002.

The new law which came into force in September changes key elements of insolvency law.

Until now directors of companies experiencing difficulties often had no other option than putting the company into liquidation.

From now on companies will have the option to enter into administration for a maximum period of 12 months, where the priority is to rescue the company.

It is hoped that the new legislation will make it easier for companies, in particular SMEs, to get through financial difficulties.