Temporary measures further extended
In our article last month (accessible here), we discussed the government’s proposed temporary restrictions on the use of statutory demands and winding up petitions (as set out in the Corporate Insolvency and Governance Bill (“Bill”)) potentially bringing welcome relief to the travel industry. Now those proposals have been enacted into law, with the Bill having received Royal Assent on 25 June 2020.
The relevant sections of the new Corporate Insolvency and Governance Act 2020 dealing with statutory demands and winding up petitions remain mostly unchanged, with the key difference being that the temporary measures will remain in place for longer than had previously been envisaged. Now, instead of the measures applying for a period of one month following the introduction of the Act (as had been set out in the Bill), they will remain in place until the end of December 2020.
The introduction of the Bill into law and the lengthening of the period during which the temporary measures will apply will be welcomed by the travel industry which, despite the gradual easing of lockdown measures, is still suffering from the effects of the pandemic.
If you have any questions about these issues in relation to your own organisation, please contact a member of the team or speak with your usual Fox Williams contact.