Extension of Temporary Restrictions on Enforcement Action

Since March 2020, the Government has introduced a number of temporary measures designed to mitigate the economic impact on businesses of the COVID-19 pandemic.

These measures include restrictions on the presentation of winding up petitions based on statutory demands served between 1 March and 30 September 2020 and on the presentation of winding up petitions during that period unless the creditor can show that it has reasonable grounds to believe that the company’s inability to pay its debts did not arise as a result of the pandemic. These restrictions, which were due to end on 30 September 2020, have now been extended to 31 December 2020 in order to continue to provide businesses with breathing space while they navigate the effects of the pandemic.

The Government has also extended the prohibition on landlords right to forfeit commercial leases for non-payment of rent to 31 December 2020 and extended Commercial Rent Arrears Recovery (CRAR) to 24 December 2020. In addition, the amount of rent which must be unpaid has increased to an equivalent of 276 days before landlords can commence CRAR to include the right to claim from sub-tenants.

Notwithstanding these temporary measures, there are still remedies available for creditors and landlords, including court proceedings and recovery from guarantors, on which we can advise.

Please contact Meera Patel or Elizabeth Asher for further information.

The information in this article was prepared on 6 October 2020. The law and practice is currently changing daily, so please check the up to date position before acting on anything you read here.