Sky News are reporting that ministers are considering passing emergency law changes to amend the Insolvency Rules in the UK. The most prominent one being a temporary 90-day moratorium on winding-up petitions and suspending wrongful trading claims and orders. It is also reported that the 10 business days interim moratorium in an Administration may be extended.
We reported on the app that Australia had made significant changes and the German Government have also banned winding-up petitions.
There has been a huge amount of Government support for those businesses who are struggling, such as job-retention schemes and Government backed loans but with these not yet fully finalised it appears the Government are looking to take further action to change the laws and protect businesses throughout this time.
The Insolvency Service have not commented but according to Sky News, Whitehall sources have said the Government is likely to respond to proposals in the coming days. WATCH THIS SPACE.
NOTE: Interestingly all winding-up petitions due to be heard in the High Court on 23rd March 2020 were adjourned. This appears to be citing logistical issues in conducting hearings remotely but with the above changes afoot winding-up petitions may be stopped altogether.