Can the Insolvency Act quell the flow of bankruptcies? We continue the Act series with a look at how moratoriums can help.

  • Under the Insolvency Act 2000, directors of companies in financial trouble will be able to get a moratorium to protect the business until a rescue plan is agreed
  • A moratorium prevents the forced winding up of a company or any other legal actions being taken against it
  • Applications for moratoriums must be supported by a licensed insolvency practitioner
  • Initially only small companies are protected

Source

Electrical and Mechanical Contractor

Postscript

Robin Tutty is a partner in the corporate department of City law firm Fox Williams and specialises in recovery and governance issues.