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Insolvency: Coronavirus

Question for Department for Business, Energy and Industrial Strategy

UIN 40488, tabled on 27 April 2020

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that insolvency measures do not inhibit otherwise viable businesses from trading during the covid-19 pandemic.

Answered on

5 May 2020

The Government announced on 28th March, plans to amend insolvency law to give companies a breathing space to help keep trading whilst exploring options for rescue as a going concern. In addition, the Government announced a temporary suspension of wrongful trading provisions to support company directors to continue trading through the Covid-19 pandemic without the threat of personal liability. The Government has also announced a temporary suspension of the use of statutory demands made between 1 March 2020 and 30 June 2020 and a restriction on winding up petitions presented from 27 April to 30 June, where a company cannot pay its bills due to the coronavirus emergency. This is to further support companies experiencing trading difficulties at this time and to help ensure that viable businesses are able to continue as a going concern.