At a Glance
Yesterday, 9 September, the UK Government announced plans to:
permit existing restrictions on winding-up petitions and statutory demands to lapse on 30 September 2021; but
until 31 March 2022:
prohibit winding-up petitions based on unpaid rent under a business tenancy which is unpaid by reason of a financial effect of coronavirus;
protect businesses from creditors insisting on repayment of relatively small debts by temporarily raising the current debt threshold for a winding-up petition to 10,000 or more (up from 750); and
require creditors to seek proposals for payment from a debtor business, giving them 21 days for a response before they can proceed with winding-up action.
Regulations in respect of these new restrictions on winding-up petitions are here and enter into force on 29 September.
The Government previously announced (in June) the extension of restrictions on forfeiture and commercial rent arrears recovery (“CRAR”) until 25 March 2022 or, if earlier, the enactment of new legislation to facilitate compromises between tenants and landlords in respect of COVID-19-related rent arrears by way of binding arbitration proceedings. The Government already permitted the temporary relaxation of wrongful trading laws, and certain other temporary insolvency-related measures, to lapse on 30 June 2021.
2. When can winding-up petitions be served from 1 October?
From 1 October 2021 until 31 March 2022, a creditor can only present a winding-up petition on the ground...
Read Full Story: https://www.lawfuel.com/blog/kirkland-ellis-uk-phases-out-covid-19-related-temporary-insolvency-measures-but-new-tapering-measures-protect-commercial-tenants/
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