IRRV Alert - week ending 19th June 2020
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Insolvency Act 1986 part A1: moratorium - draft guidance for monitors (16 June 2020)
Guidance
Insolvency Act 1986 part A1: moratorium - draft guidance for monitors
Draft guidance is intended to assist insolvency practitioners by setting out the principal duties and actions required of the monitor.
Published 16 June 2020
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Draft guidance for monitors
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The Corporate Insolvency and Governance Bill introduces a new moratorium which will give a company in financial distress, a 20 business day breathing space from creditor enforcement action which can be extended. The moratorium is intended to be a “light touch procedure” which is overseen by a monitor who must be a licensed insolvency practitioner. The monitor has a number of statutory roles, the most important of which is their requirement to bring the moratorium to an end if rescue of the company is no longer likely or the company is not paying those debts that it needs to pay within the process.
This draft guidance is intended to assist insolvency practitioners by setting out the principal duties and actions required of the monitor and will be subject to further changes. A final version will be published once the Corporate Insolvency and Governance Bill has completed its passage through Parliament.
Published 16 June 2020