Claims against insolvent companies and individuals

Corporate insolvency processes

Restrictions on bringing, or continuing with, claims against a company which is in a formal insolvency process apply in administrations, liquidations and, to some extent, company voluntary arrangements (CVAs).

In addition, a moratorium under Part A1 of the Insolvency Act 1986 (IA 1986) is designed to allow viable businesses time to restructure or seek new investment free from creditor action.

There is no formal moratorium during either a restructuring plan under Part 26A of the Companies Act 2006 (CA 2006) or a scheme of arrangement under CA 2006, Pt 26, although parties may agree their own arrangements. Once approved, both restructuring plans and schemes of arrangement bind those affected classes of creditors and/or...