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UK Extends Temporary Covid-19 Insolvency Related Measures

"The impact on businesses of the pandemic has been widespread and whilst we have continued to support the cashflow needs of our new and existing clients throughout this extremely challenging period, yesterday’s announcement by the Government to extend its temporary insolvency measures is very much welcomed."

The key elements of the support package extension are as follows:

Statutory demands and winding-up petitions will continue to be restricted to protect companies from creditor enforcement action due to debts related to coronavirus (COVID-19). Revised end date 30/6/21.

Small suppliers will not have to continue to supply a business in insolvency. However, larger suppliers will not be able to cease their supply or ask for additional payments while a company is going through a rescue process. Revised end date 30/6/21.

Entry into a moratorium will remain relaxed and a company will be able to enter a moratorium if they have been subject to an insolvency procedure in the previous 12 months. Revised end date 30/9/21.

“The extension will allow business owners who have been struggling as a result of the pandemic more time to consider and plan for when these and other Government support packages such as the furlough scheme will come to an end.”

Image by Amit Shaiwale

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Advantedge Commercial Finance Ltd, 
Registered Company number 04206708.

Advantedge Commercial Finance (North) Ltd, 
Registered Company number 08579241. 

Registered office address: 
1 London Street, Reading, Berkshire, RG1 4PN 

© 2020 Advantedge Commercial Finance Ltd