Extension of Covid-related measures in the Corporate Insolvency and Governance Act 2020 (“CIGA”)

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On 24 September 2020 the Corporate Insolvency and Governance (Extension of the Relevant Period) Regulations 2000 came into force, extending the application of some, but not all, of the temporary Covid-related measures set out in CIGA. There are now various different expiry dates that practitioners and stakeholders need to be aware of:-

  • The suspension of provisions relating to wrongful trading have not been extended and will come to an end on 30 September 2020;
  • The temporary provisions relaxing the requirements for company meetings have been extended until 30 December 2020;
  • The restrictions on statutory demands and winding up petitions have been extended until 31 December 2020. Companies that are the subject of winding up petitions presented before this date will not need to apply for validation orders under s127 of the Insolvency Act 1986 in order to make payments or dispositions of company property;
  • The exemption of small businesses from the provisions preventing suppliers from terminating contracts due to customer insolvency is extended until 31 March 2021;
  • The temporary relaxation of the eligibility requirements for the new moratorium procedure have also been extended to 31 March 2021, although it is expected that a further set of regulations will shortly restrict this somewhat by bringing back the requirement for the Monitor to certify that the moratorium is likely to result in the rescue of the company as a going concern.

If you have any queries about these regulations and how they affect you or your business, please do not hesitate to contact Ruth Thurland or Mike Evans

RELATED:   INSOLVENCY & CORPORATE RECOVERY


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