The Government has announced that it is extending insolvency measures supporting businesses throughout the pandemic to the end of June 2021.
First introduced in the Corporate Insolvency and Governance Act at the start of the pandemic, the measures protect businesses from creditor enforcement while also removing personal liability on company directors.
As a part of the extension, statutory demands and winding-up petitions will be restricted, protecting companies from creditor enforcement action.
Further action included until the end of June is that large suppliers will be unable to cease theri supply or push for additional payments while a company is undergoing a rescue process.
Finally, in an extension lasting until 30 September 2021, a firm will be able to enter a moratorium if they have undertaken an insolvency procedure during the past year.
Lord Callanan, minister for corporate responsibility, said: “We’re extending these important measures to give businesses the extra breathing space they need as we cautiously reopen the economy and look to build back better from the pandemic.
“With the threat of aggressive creditor action and insolvency eased, companies will be able to focus all their efforts on their recovery.”
Dr Roger Barker, director of policy and corporate governance at the Institute of Directors, added that “this has been an appropriate step” to take by the Government in ensuring that “viable businesses survive and are in a position to contribute to a meaningful economic recovery”.