On 23 April 2020 the Business Secretary, Alok Sharma MP, set out that the Government plans to place a temporary moratorium on a number of debt recovery practices.
This included the temporary ban on the use of statutory demands (made between 1 March 2020 and 30 June 2020) and winding up petitions presented from Monday 27 April, through to 30 June, where a company cannot pay its bills due to coronavirus. This was aimed to help ensure these companies did not fall into deeper financial strain due to coronavirus. The measures were to be included in the Corporate Insolvency and Governance Bill.
The official press release from the Government can be found here: https://www.gov.uk/government/news/new-measures-to-protect-uk-high-street-from-aggressive-rent-collection-and-closure
However, with over two weeks having passed since the announcement, there is still no sign of the Corporate Insolvency and Governance Bill and the emergency measures to stop these debt recovery actions. According to the UK Parliament’s website (https://services.parliament.uk/bills/#i) as of the date of this post, the bill has not yet been placed before parliament.
So what does this mean? Has the Government made a U-turn on its announcement about debt recovery actions in light of the easing of the lockdown measures? Or is the legislation still in the pipeline ready to assist struggling businesses?
At MBM, we specialise in all aspects of debt recovery, whether that’s pursuing a debt on behalf of your company or defending it from creditor recovery actions. Contact the MBM commercial dispute resolution team at firstname.lastname@example.org or on 0131 226 8200 to speak to one of our team today. We will be more than happy to have an initial no-cost chat to discuss your case and see if we can help.