Following the delay of “Freedom Day” to 19 July 2021 it was widely anticipated that the provisions of The Corporate Insolvency & Governance Act 2020, introduced to provide support for businesses during the Covid-19 pandemic, would be extended beyond the 30 June 2021 deadline.
Therefore it was no surprise that the Government & Insolvency Service announced a three month extension to these provisions to 30 September 2021. The Act provides restrictions on the presentation of winding up petitions and certain restrictions on termination of Contracts.
Interestingly, the temporary suspension of offences relating to Wrongful Trading has not been extended beyond the 30 June 2021 deadline and I am sure this will be a subject for debate with solicitors and Insolvency Practitioners alike looking at how this will affect insolvencies going forward.
Whilst the economy slowly begins to reopen a return to pre Covid-19 levels will inevitably take time. It is likely that many businesses will encounter issues in the supply chain and the provision of labour and employees, most notably in the construction and hospitality industries, which may in turn lead to increased costs and place additional strains on business finances.
For more information about the RPG incorporating Crawfords Business Recovery team and our insolvency and recovery services which are personalised to suit your needs, please contact Gareth Hunt or another member of the Business Recovery team. See more details here RPG – insolvency/
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