Last week, the government proposed further extensions to existing insolvency measures:
- Restrictions on statutory demands and winding up petitions will remain for a further three months until 30 September 2021. This is to protect companies from creditor enforcement action where their debts relate to the pandemic.
- The temporary rules pertaining to a moratorium under PartA1 of the Insolvency Act 1986 are extended to 20 September 2021. These include:
- the monitor of the moratorium can qualify their view that it is likely to result in the company being rescued as a going concern with the caveat that this does not take into account any worsening of the company’s financial position due to Covid-19;
- a waiver of the requirement that a company seeking a moratorium must use a court application even if they are subject to a winding-up petition; and
- companies are eligible for the moratorium despite having been subject to a moratorium in the previous 12 months.
- Commercial lease forfeiture restrictions are extended for another nine months, to 25 March 2022. These restrictions mean commercial landlords are prevented from forfeiting commercial leases or evicting their tenants due to non-payment of rent.
Refer to our previous article listing extension deadlines coming up at the end of June 2021