Insolvency Service announces extension to temporary insolvency measures amid coronavirus (COVID-19)

Insolvency Service announces extension to temporary insolvency measures amid coronavirus (COVID-19)

The Insolvency Service has announced that certain temporary measures which had been introduced to offer extra support during the coronavirus (COVID-19) pandemic will be extended.

While the detail is awaited, the announcement confirmed that restrictions on statutory demands and winding up petitions where the debts relate to the pandemic will be extended until 30 September 2021. They had been due to expire on 30 June 2021.

It appears the temporary suspension relating to wrongful trading and the exemption for small suppliers from the prohibition on ipso facto clauses will not be extended. 

In addition, the Ministry of Housing, Communities & Local Government (MHCLG) has announced an extension to the protections available to commercial tenants who are struggling with rent arrears, because they are still closed due to coronavirus, until 25 March 2022. MHCLG intends to pass legislation introducing a new binding arbitration scheme to deal with the outstanding rent arrears that have built up when a business has had to remain closed during the pandemic. For further detail, see LNB News 17/06/2021 26.

Source: Government extends business support measures

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