The Insolvency Service issued a consultation paper in July 2010 on proposals for a restructuring moratorium.
This follows a previous consultation paper titled Encouraging Company Rescue, issued in June 2009, which outlined three proposals:
- extending the present small companies moratorium to all companies;
- introducing a court sanctioned moratorium for up to three months; and
- super priority for rescue finance in administration.
After consideration of the results of that consultation, the present consultation embraces the second of those proposals, a court sanctioned moratorium for up to three months, which is intended to allow a breathing space while a restructuring process, either a consensual process or a statutory company voluntary arrangement or scheme of arrangement, is negotiated and put in place. The moratorium would be available to all companies provided they met the eligibility tests and the qualifying conditions.