Changes to the UK Insolvency Regime – The New Moratorium

    View Author June 2020

    On Thursday 25 2020 the Corporate Insolvency and Governance Act (the Act) received Royal Assent. The Act makes both temporary and permanent changes to the UK insolvency laws.

    As part of these measures, a ‘new debtor-in-possession moratorium’ has been introduced to existing legislation that will enable companies to have a minimum 20 business days breathing space without threat of creditor action. Under the moratorium, the day-to-day running of the business remains in the directors’ control, under the supervision of a licensed insolvency practitioner (the monitor) and subject to certain restrictions.