Extension of Restrictions on Statutory Demands, Winding Up and Suspension of Liability for Wrongful Trading to 30 June 2021

On Wednesday 24 March, the government confirmed that it will be extending the current temporary restrictions on statutory demands and winding-up petitions and the temporary suspension of directors’ liability for wrongful trading put in place under the Corporate Insolvency and Governance Act 2020, until 30 June 2021.

The extensions, set out in the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2021, laid before parliament on 24 March, will come into effect on 26 March 2021.

This will bring the suspension measures in line with the government’s announcement on 10 March that it will be extending the current restriction on commercial landlords’ right of re-entry or forfeiture for non-payment of rent until 30 June 2021, together with the restriction on the use of the Commercial Rent Arrears Recovery (CRAR) process by landlords, which will increase the total number of days outstanding rent required for CRAR to be used to 457 days between 25 March and 23 June 2021, and 554 days between the 24 and 30 June 2021.