Significant increase in debt threshold for a winding up petition will leave many creditors frustrated
The Insolvency Service announced yesterday (9 September) that temporary insolvency measures – brought in to protect businesses from insolvency during the pandemic – will be phased out from 1 October. However, the announcement came with a twist – the government also outlined new measures to support small business and commercial tenants.
Companies under financial strain due to pandemic trading restrictions have been protected from creditor action since June 2020, through the Corporate Insolvency and Governance Act 2020.
The insolvency restrictions were brought in to ensure viable businesses were not forced into insolvency unnecessarily. However, as normal trading conditions return, the restrictions...
