A winding-up petition is one of the most critical pieces in a creditors armoury where a debt remains unpaid. However, in these challenging times, the government clearly wants to provide a temporary shield to companies who are unable to pay their debts due to COVID-19.
Although the announcement by the UK Government on 23 April 2020 referred to the restrictions on issuing winding-up petitions as being part of further measures to protect the UK high street from aggressive rent collection and closure, the Corporate Insolvency and Governance Bill 2020 (the Bill) is not sector specific the changes apply to any company that can be wound up and to any type of debt, not just rent liabilities.
The proposed prohibitions and restrictions on the pr…
Read the full article at: https://www.mayerbrown.com/de/insights/blogs/2020/05/windingup-petitions–covid19-temporary-restrictions-introduced-by-the-corporate-insolvency-and-governance-bill-2020