On 16 June 2021 the Government announced a further extension of the restrictions that have been in place following the implementation of the Corporate Insolvency and Governance Act 20202 (CIGA) that was created in response to the Covid-19 pandemic.
The restrictions on statutory demands and winding up petitions have been extended for a further 3 months, to 30 September 2021. This means that any statutory demand served on a corporate debtor before 1 October 2021 cannot be relied upon when seeking an order for the winding up of that company. It also means that a creditor cannot present a winding up petition before 1 October 2021 unless it can demonstrate some exceptional circumstances, which the Act makes provision for.
It is worth noting that the restrictions do not, though, give protection to individual debtors from personal statutory demands and subsequent bankruptcy proceedings.
If you have any questions relating to this matter, please contact Gemma Newing or a member of our Rooks Rider Solicitors’ Dispute Resolution team for advice and assistance.