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Monday, 28 September 2020

COVID-19: Temporary Insolvency Protections Extended Until 31 December 2020

The temporary insolvency protections implemented by the Corporate Insolvency and Governance Act 2020 (CIGA) have been extended throughout the UK until 31 December 2020.

They had been due to expire on 30 September 2020.

These are:

·       The prohibition on presenting winding-up petitions based on statutory demands.

·       The prohibition on presenting winding-up petitions or making winding-up orders based on any other definition of the debtor’s inability to pay its debts unless coronavirus can be discounted as a reason for that inability.

There are various other detailed measures that are extended until 30 March 2021, which can be found in the statutory instrument and explanatory memorandum.

The extension of these protections provides further comfort for commercial tenants in addition to the extension of the protection from forfeiture for non-payment of business rent and the restrictions on recovering rent from commercial tenants by CRAR, both also extended until 31 December 2020, as described in this earlier blogpost.

 

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