Update on Coronavirus Insolvency Provisions

On 21 May 2020 we reported on the provisions of the Corporate Insolvency and Governance Act 2020 that were aimed at assisting struggling businesses during the Coronavirus pandemic.

The Government has brought into force a new statutory instrument to extend the operation of several key Covid-related restrictions and measures that were due to expire on 30 September, but will now expire on new dates:-

• The restrictions on statutory demands and winding up petitions are now in force until 31 December 2020
• The dispensation from seeking validation orders, required by companies that are the subject of winding up petitions, is also extended to 31 December 2020
• The temporary dispensation for small suppliers from the new ipso facto rules will remain in place until 30 March 2021
• The temporary modifications to the rules on the new moratorium regime will be partly extended to 30 March 2021
• The relaxation of the conditions for annual general and other meetings of qualifying bodies has been extended to 30 December 2020

Note however that not all of the provisions have been extended. In particular the suspension of liability for wrongful trading has not been extended.

CONTACT US

As with all Covid-related legislation, this is a fast-moving area. For more information on the issues covered in this article, please get in touch with our Commercial Dispute Resolution team by calling 01484 821 500 or email info@ramsdens.co.uk to speak to a member of the team.