Sector: Property

Topic: Coronavirus

Restrictions on winding up petitions

By Richard Kleiner

05 Oct 2020

On 26 June 2020, The Corporate Insolvency and Governance Act 2020 became law, which brought temporary measures to protect businesses through the pandemic, such as the restrictions on winding up petitions.

The restrictions on winding up petitions protect companies from creditors where unpaid debt is a result of covid-19. The measure includes provisions to void statutory demands issued against companies during the pandemic to give businesses the opportunity to reach fair agreements with creditors. 

The restrictions on winding up petitions was due to end on 30 September 2020, then 31 December 2020, but has now been extended to 31 March 2021 to give businesses more 'breathing space'. 

The government has also confirmed:

  1. It intends to reinstate the temporary removal of the threat of personal liability for wrongful trading from directors until 30 April 2021
  2. Companies and other qualifying bodies with obligations to hold AGMs will continue to have the flexibility to hold these meetings virtually until 31 March 2021

However, at some point the handcuffs will be removed from landlords, and since there can be no guarantee that this will happen in a graduated way, all tenants will need to have a plan in place for 2021. If you need our help navigating the waters ahead – or even if you just need a sounding board – contact me at rkleiner@geraldedelman.com or call me on 020 7299 1405.

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