The UK Government have announced further measures to protect businesses from insolvency and eviction up until 30 June 2021.
The measures that have been extended include:
Winding-Up Petitions: Temporary changes to the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2021 have extended the moratorium on creditor winding-up petitions to 30 June 2021, unless it can be established that the insolvency is unrelated to the coronavirus pandemic. Statutory demands served between 1 March 2021 and 30 June 2021 may not be used to form the basis of a winding-up petition.
Commercial Tenant Eviction: The moratorium on forfeiture of commercial leases for non-payment of rent has been extended until 30 June 2021.
Rent Arrears: Restrictions on exercising Commercial Rent Arrears Recovery (CRAR) have also been extended to 30 June 2021.
It was widely anticipated that these extensions would be implemented by the UK Government to ensure that businesses and tenants are provided with breathing space and have the necessary protection from creditors and landlords during a period where companies are continuing to be affected financially by the coronavirus pandemic.
The UK Government’s aim in extending these measures is to allow businesses to recover during the relaxation of the lockdown restrictions and for commercial tenants to reach agreements with their landlords over rent to enable businesses to remain open.
Tenants should be aware that following 30 June 2021, the right to forfeit will arise, unless the period is extended further.
If you have any queries about insolvency and administration, please feel free to contact our Business Restructuring & Insolvency team. For questions on disputes related to a commercial tenancy, contact Senior Director Andrew Conway for a confidential discussion.