Corporate Insolvency Governance Act 2020 (Coronavirus) (Extension of the relevant period) Regulations 2021.
Yesterday, the regulations were laid before Parliament and are set to come into force on 26 March 2021. However there were a few amendments;
- The regulation on the suspension on wrongful trading which was due to end on 30 April 2021 has been extended to 30 June 2021.
- Termination clauses, ie, small suppliers are exempted from the obligation to supply has been extended to 30 June 2021
- A company Moratorium has been extended to 30 September 2021
- Statutory demands and winding up petitions will continue to be restricted until 30 June 2021
These extensions prove that the Government is still committed to helping the UK economy. It is less good news for those businesses which are owed money and are struggling to take action.