On 23 April 2020, the government announced that it will be introducing temporary measures to protect high street shops. The government has announced on 24 September 2020 that these measures will be extended in order to give businesses some breathing space.
The measures originally introduced were due to expire on 30 September 2020 but many of which have been extended until the end of the year.
If you require any urgent legal assistance please get in touch with one of our team of specialist insolvency and winding-up petition lawyers on 02071830529 or email:Â [email protected].
Which Insolvency measures have been extended?
Are winding-up petitions still restricted?
Statutory demands and winding-up petitions will continue to be restricted until 31 December 2020 to protect companies from aggressive creditors as a result of coronavirus related debts.
Can AGMs still be held virtually?
Companies who are obliged to hold Annual General Meetings will continue to have flexibility to hold these meetings virtually until 30 December 2020.
This measure will allow shareholders to continue to examine company papers and vote on important issues remotely.
Are termination causes still prohibited?
Termination causes are still prohibited, preventing suppliers from ceasing their supply or asking for additional payments while the company is going through a rescue process.
Small suppliers will be except from this until 30 March 2021 so they can protect their business if necessary.
Has the new moratorium procedure been extended?
The new moratorium procedure, which was introduced with the Corporate Insolvency and Governance Act 2020 and came into force on 26 June 2020, will be extended until 30 March 2021.
The modifications to the procedure allows a company or LLP to pursue a rescue plan free from creditor action.
It is vital that we continue to deliver certainty to businesses through this challenging time, which is why we are now extending these important and necessary measures to protect companies from insolvency.
Through this measure, we want to ensure businesses are able to not only come through this testing period, but also to plan, adapt and build back better.
Business Minister Lord Callanan
Can I still present a Winding Up Petition after 90 days or more of unpaid debt?
Under the government’s intended temporary ban, any winding up petition that claims that the company is not able to pay its debts will be reviewed carefully by the Court. The proposed law however, will not permit petitions to be presented, or winding up orders to be made where the company’s inability to pay the debt claimed is the result of COVID-19
How can we help: We keep debt recovery simple
We are lawyers that specialise in recovering unpaid debts from individuals or companies so we know the best way to get your unpaid debts paid up quickly. This may involve Insolvency or Litigation proceedings.
As a result of our success we are now able to offer clients a proactive debt recovery package for a small fixed fee (which is likely to be refunded!).
If you require any further information please do not hesitate to send an email or give us a call.
Instruct Specialist Insolvency Lawyers
We’re masters of insolvency dispute litigation. We are a specialist City of London law firm made up of Solicitors & Barristers. We’re based in the Middle Temple Inns of Court (next to the Royal Courts of Justice where the High Court and Central London County Courts are based). We’re experts in dealing with matters surrounding insolvency in particular our team have unparalleled experience at both issuing and defending winding up petitions vigorously at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules. We provide a quick no cost initial telephone case review to establish whether or not we can help you; just call one of our team on 02071830529.