The first contested Part A1 moratorium procedure—when is the monitor required to terminate?

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Standard for monitors’ decision-making—‘irrationality’ threshold
• ‘Commercially realistic’ approach when determining inability to pay
• Timing of debts/inability to pay
• Monitors’ decision to resist termination of moratoria
• Court’s discretion to terminate moratoria
• Case details

Article summary

Restructuring & Insolvency analysis: The English court has ruled for the first time on a contested moratorium process, clarifying a critical aspect of the procedure regarding the requirement for monitors to terminate a moratorium if they think that the company is unable to pay certain pre-moratorium debts. The case involved the Corbin & King group which operates well-known restaurants including the Wolseley and the Delaunay.