Moratorium

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The Corporate Insolvency and Governance Act 2020 (CIGA 2020) inserted a new Part A1 into the Insolvency Act 1986 (IA 1986) which provides for a new insolvency process whereby directors of insolvent companies, or companies that are likely to become unable to pay their debts (ie insolvent) can obtain a moratorium. This period lasts for an initial period of 20 business days, which can be extended. It is designed to allow viable businesses time to restructure or seek new investment free from creditor action. The moratorium is overseen by an insolvency practitioner acting as a ‘monitor’, although the directors will remain in charge of running the business on a day-to-day basis (known as a ‘debtor-in-possession’ process with the company being the ‘debtor’) subject to certain constraints. The intention is to provide a streamlined procedure that keeps administrative burdens to a minimum, makes the process as quick as possible and does not add disproportionate costs on to struggling businesses.

The moratorium is free-standing—it is not be a gateway or tied to a particular insolvency or restructuring process.

Who is eligible to apply?

The company needs to meet

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Latest Restructuring & Insolvency News

Insolvency Service announces Manchester company wound-up for unlicensed insolvency activities

The Insolvency Service announced that Davis Acquisitions Ltd was wound up in the interest of the public at the High Court in Manchester on 30 September 2025. The Manchester-based firm acted as a front to facilitate unlicensed insolvency activities previously conducted by Save Consultants Ltd, which was also wound up in the public’s interest in 2024. Davis Acquisitions Ltd assumed responsibility for 78 client companies formerly linked to Save Consultants Ltd, enabling directors to transfer control and evade formal insolvency proceedings, asset recovery, and conduct directorship scrutiny. Both companies' websites guaranteed that directors could ‘leave their debts behind’ and avoid ‘difficult insolvency proceedings’ by selling their companies within 48 hours, thereby sidestepping the established procedures that protect creditors. The Official Receiver has been appointed as the liquidator of Davis Acquisitions Ltd.

Restructuring & Insolvency weekly highlights—2 October 2025

This week's edition of Restructuring & Insolvency weekly highlights includes: an analysis of a judgment that considers an application for possession and sale of a bankrupt’s property under section 335A of the Insolvency Act 1986 (Armstrong v Temblett), a closer look at Part 26A restructuring plans (Re Madagascar Oil and Re DSTBTD Ltd), plus a round-up of other news and cases for restructuring and insolvency professionals.

New Practice Note: Insolvency claims and sections 21 and 32 of the Limitation Act 1980

The LexisNexis Restructuring & Insolvency practical guidance team has published a new Practice Note—‘Insolvency claims and sections 21 and 32 of the Limitation Act 1980’. This Practice Note, produced in partnership with Ali Tabari and Natalie Kearney of St Philips Chambers, discusses sections 21 (trustees and fraud) and 32 (fraud, deliberate concealment or mistake) of the Limitation Act 1980.

Applications for possession and sale of the family home in bankruptcy (Armstrong v Temblett)

Restructuring & Insolvency analysis: The case concerned an application by Mr Armstrong as trustee in bankruptcy (the trustee) for a possession and disposal order (the application) of Mrs Vanessa Temblett’s property in London, which was jointly owned with her husband (the London property). The court held that the trustee was entitled to possession and sale of the London property under section 335A of the Insolvency Act 1986 (IA 1986) as no exceptional circumstances were shown to displace the statutory presumption that the interests of creditors outweigh all other considerations. The judgment notes the importance for practitioners to act within statutory time frames and demonstrates the court’s support of trustees fulfilling their duties in circumstances where the bankrupt is uncooperative and/or obstructive. The case also highlights that the court will not be dissuaded from making an order in circumstances where the increased costs of a drawn-out process can deplete an estate, absorbing the proceeds of realisations. Written by Amy Halliday, associate and Luke Bergin, trainee solicitor at Addleshaw Goddard LLP.

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