The Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 10) (No. 2) Regulations, SI 2021/1091, replace the Corporate Insolvency and Governance Act 2020 Sch 10.
That Schedule was to have been substituted by the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 10) Regulations, SI 2021/1029, but those previous regulations contained an error in the commencement date, which would have cut off the existing insolvency protections prematurely. Consequently, the previous regulations have been revoked before they were due to take effect.
The new Sch 10 will have effect from 1 October 2021 and will avoid a ‘cliff-edge’ withdrawal of the restrictions on the use of winding-up petitions, by introducing new tapering measures between 1 October 2021 and 31 March 2022 which include the following requirements:
creditors must demonstrate that they have sought to negotiate repayment of a debt before seeking to wind a company up;
the debt owed must be at least £10,000; and
petitions cannot be brought in respect of a commercial rent debt until the end of March 2022 unless the creditor can prove that the non-payment of the debt is not related to the pandemic.
The Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 10) (No. 2) Regulations, SI 2021/1091, replace the Corporate Insolvency and Governance Act 2020 Sch 10.
That Schedule was to have been substituted by the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 10) Regulations, SI 2021/1029, but those previous regulations contained an error in the commencement date, which would have cut off the existing insolvency protections prematurely. Consequently, the previous regulations have been revoked before they were due to take effect.
The new Sch 10 will have effect from 1 October 2021 and will avoid a ‘cliff-edge’ withdrawal of the restrictions on the use of winding-up petitions, by introducing new tapering measures between 1 October 2021 and 31 March 2022 which include the following requirements:
creditors must demonstrate that they have sought to negotiate repayment of a debt before seeking to wind a company up;
the debt owed must be at least £10,000; and
petitions cannot be brought in respect of a commercial rent debt until the end of March 2022 unless the creditor can prove that the non-payment of the debt is not related to the pandemic.
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