Temporary insolvency measures are ending… but…
This week the government announced that temporary measures introduced under the Corporate Insolvency and Governance Act 2020 will now expire on 31st March.
The temporary measures increased the limit upon which a Winding Up Petition could be presented against a company from £750 to £10,000 or more. From 1st April 2022, the limits will return to pre-pandemic levels.
There remains an exception in respect of protected rent caught by the Commercial Rent (Coronavirus) Act 2022. This means that landlords cannot seek to wind up a tenant business in respect of rent that is a protected rent debt.
Whilst good news for those creditors seeking payment from a limited company, Winding Up Petitions and the Insolvency process generally, does not come cheap. It is very easy to quickly fall into a ‘good money after bad’ scenario.
Conflict International are highly effective operators in the field of asset location and corporate due diligence. Before embarking upon what could be an expensive insolvency process speak to us about how we can help you target your litigation funding more efficiently.
For a free no obligation chat to discover how Conflict International can assist you, please reach out to our Director of Compliance Roger Bescoby by email here.