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Temporary COVID – 19 Insolvency Provisions Extended
In our last Briefing we explained certain temporary changes to the insolvency regime arising from the pandemic and set out the relevant dates of those provisions.
On 26 March 2021, the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2021 (SI 2021/375) extended various temporary provisions in the Corporate Insolvency and Governance Act 2020 (“CIGA 2020”) that had otherwise been due to expire in March and April 2021.
The following provisions of CIGA 2020 that were due to expire in March and April 2021 will now expire on 30 June 2021:
- The suspension of wrongful trading liability under section 12 of CIGA 2020. This had previously been set to expire on 30 April 2021.
- The restrictions on presenting winding-up petitions and on winding-up orders under Schedule 10 to CIGA 2020. These had previously been set to expire on 31 March 2021.
- The exclusion of small suppliers from the prohibition on terminating a supply contract for the customer’s insolvency under section 15 of CIGA 2020. This had previously been set to expire on 30 March 2021.
In addition, the relaxation of the requirement that a company seeking a Part A1 moratorium has not been in an insolvency procedure or Part A1 moratorium in the previous 12 months, which had been set to expire on 30 March 2021, is now extended until 30 September 2021.