End of temporary winding up restrictions

Amongst the various temporary measures to help protect companies affected by Covid were a number of insolvency restrictions.

Most of these measures expired at the end September 2021, except for the restrictions on winding up petitions against companies. This remaining restriction is ending today 31 March 2022.

This impact of this is twofold: anyone owed money who already has a judgement against a Company will be able to present a petition to the Court and a Company who owes money and has been unable to reach a settlement with a creditor will be at risk of such action. If an order is made by the court it will result in the Company being wound up as a liquidation.

Karyn and I act for both creditors who are owed money and Companies who are struggling to pay their debts or negotiate with creditors.  Our focus is to try to seek a solution that works for all parties and avoids court action which is costly and ultimately will impact on the return to creditors.  As always the key is to take professional advice early so if you are likely to be impacted as a result of the end of this restriction please do pick up the phone.