The Insolvency (England and Wales) (No 2) (Amendment) Rules, SI 2021/1028, provide permanent procedural rules for the company moratorium procedure which was introduced into the Insolvency Act 1986 by the Corporate Insolvency and Governance Act 2020. The moratorium allows companies in financial distress a breathing space in which to explore rescue and restructuring options free from creditor action.
The effect of these amendments is to replace existing temporary moratorium rules for England and Wales by incorporating permanent rules for the moratorium into the Insolvency (England and Wales) Rules, SI 2016/1024, ensuring that the procedural rules for corporate insolvency procedures are contained in one instrument.
The Insolvency (England and Wales) (No 2) (Amendment) Rules, SI 2021/1028, provide permanent procedural rules for the company moratorium procedure which was introduced into the Insolvency Act 1986 by the Corporate Insolvency and Governance Act 2020. The moratorium allows companies in financial distress a breathing space in which to explore rescue and restructuring options free from creditor action.
The effect of these amendments is to replace existing temporary moratorium rules for England and Wales by incorporating permanent rules for the moratorium into the Insolvency (England and Wales) Rules, SI 2016/1024, ensuring that the procedural rules for corporate insolvency procedures are contained in one instrument.
