The moratorium in administration
Produced in partnership with Kate Rogers of Radcliffe Chambers

The following Restructuring & Insolvency practice note produced in partnership with Kate Rogers of Radcliffe Chambers provides comprehensive and up to date legal information covering:

  • The moratorium in administration
  • Coronavirus (COVID-19)
  • The purpose of the moratorium
  • When the moratorium applies
  • The effect of the moratorium
  • Outstanding winding-up petitions
  • Administrative or other receiver already in place at the time of the administrator’s appointment
  • Enforcing security over the company’s property
  • Repossessing the company’s goods under a hire purchase agreement
  • Exercising right of forfeiture
  • More...

The moratorium in administration

The moratorium is at the very heart of the administration process, which is seen as one of the key tools for a company rescue or restructure of the business. This Practice Note sets out what the moratorium is, how it applies, and the factors the court will take into account when faced with an application to lift it.

Coronavirus (COVID-19)

This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and processes as a result of the Coronavirus (COVID-19) pandemic. For further information, see Practice Notes: Coronavirus (COVID-19)—Changes to the court process in insolvency proceedings. For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview.

The purpose of the moratorium

The purpose behind the moratorium is to give the company/its administrator(s) breathing space to formulate and implement the proposals and to investigate the position of the company, its business and assets. As set out in the section The effect of the moratorium below, the moratorium is a prohibition on proceedings, actions and steps being taken against the company/its property during the applicable period, except with the consent of the administrator (if one is appointed) or the permission, or leave, of the court.

There are in effect two types of moratorium in an administration, the moratorium and the

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