Coronavirus and the moratorium procedure for corporate insolvency

s.ritchie • October 2, 2020

and so the stay continues....


Following the swift enactment of the Corporate Insolvency and Governance Act 2020 passed in June 2020, giving eligible companies the ability to obtain a moratorium allowing various protections against creditors, on 24th September the Government unveiled The Corporate Insolvency and Governance Act 2020 (Extension of the Relevant Period) Regulations 2020(the “Regulations”). 


The changes brought in by the 
Corporate Insolvency and Government Act 2020 were due to expire on 30 September 2020 but have now been extended in order to give businesses much needed breathing space to continue to trade. 


This comes alongside various other measures introduced to relieve the pressure on the economy following a further period of restrictions designed to prevent a second significant spike in infections. 


You can read the full legislation using the following link ( https://www.legislation.gov.uk/uksi/2020/1031/introduction/made) and for a change it is fairly short and snappy.. 



So what do the Regulations actually do?


The Regulations, which came into force on 29 September 2020, now prevent the presentation of a winding-up petition, based on a statutory demand served between 1 March 2020 and 31 December 2020. This is regardless of whether the sums demanded accrued as a result of the effect of the pandemic on the debtor’s business or not. 

The Regulations also extend the prohibition on winding-up petitions being presented unless certain conditions are satisfied, which is now in place between 27 April 2020 and 31 December 2020. These conditions are that the creditor must have reasonable grounds for believing: 

(a) coronavirus has not had a financial effect on the company; or 
(b) that the debtor would be in the same position even if coronavirus had not had a financial effect on it.

 
Previously, where a commercial tenant could not pay their rent, a landlord could use the above measures to encourage the tenant to pay their arrears. If the tenant still refused to pay, the landlord could make a winding-up petition at court, ultimately forcing the closure of the company unless the arrears were paid.


Key points to note

  • The threshold to bring a winding up petition is (until 31 December 2020 at least) much more difficult to satisfy and of little practical effect 


  • The provisions apply to companies only; individuals do not get the same protection


  • The forfeiture moratorium and restrictions on the recovery of arrears by CRAR have both been extended in England until 31 December 2020 so the practical options of recovery are severely limited for landlords


  • On the face of it, come 1 January 2021, there may be a flurry of activity descending upon an already stretched court system


How does this impact Commercial Landlords and what can be done?


The only practical measures available to commercial landlords is to reach an agreement with their tenants i.e. by way of a side letter, amending the current payment terms of the lease or instead issuing debt recovery proceedings. 


Woodstock has been instructed by several commercial landlords experiencing problems with tenants paying their rent on time or at all. We have however had great success recovering full rent owed, by engaging with tenants and providing strategic advice to our landlords. Often a well drafted letter before action and sensible dialogue works better for both parties. 


If you need help with recovering commercial rent arrears, then please contact us and we will be happy to help. 


Contact Us

Call Us

Contact Us

News & Insights

By Coco Beverley • October 14, 2026
We are delighted to share that Woodstock Legal Services has been shortlisted for Conveyancing Firm of the Year - South of England at the Modern Law Conveyancing Awards 2026 . We are also proud to see Bethany Hudson , one of our Consultant Licensed Conveyancers, shortlisted for Rising Star of the Year. With our head office in Poole, Dorset, we are proud of our roots in the South West and the relationships we have built within the region’s property community. These shortlists recognise both the strength of our Residential Property team and the people behind the scenes who support our clients throughout their property journey. At Woodstock Legal Services, our focus has always been on building a conveyancing service that works for both our clients and our consultants. By bringing together experienced conveyancers with dedicated back-office support and the right infrastructure, we aim to make the process of buying and selling property as straightforward as possible, while giving our lawyers the flexibility and support to deliver excellent client care. Our connection to the South West remains an important part of who we are. Through relationships with local property professionals and organisations such as Poole Property Club , we continue to build connections within the property market while supporting clients across England and Wales. Over the past year, our Residential Property team has continued to grow, supported by investment in our people, processes and technology. Our dedicated back-office teams play an equally important role, helping keep transactions moving so our conveyancers can focus on their clients and the legal work that matters most. Being shortlisted for Conveyancing Firm of the Year in the South of England is a recognition of the collective effort behind our service, from the conveyancers working directly with clients to the teams supporting them behind the scenes. Car Jermyn Managing Director of Woodstock Legal Services, added: " I’m incredibly proud to see Woodstock Legal Services shortlisted for Conveyancing Firm of the Year and Bethany Hudson recognised as a Rising Star. Both awards reflect the quality of our lawyers and the commitment of the wider team supporting them. It’s great to see the work happening across our business recognised, particularly in the South of England, where our roots are firmly established. " A growing modern law firm As we continue to grow, we are always keen to speak with experienced lawyers who want to work differently, be properly supported, and be part of a collaborative community. Behind every successful consultant is the right firm. Click here to see why consultants choose Woodstock.
Rental agreement document with house keys, a purple keyring, and a pen ready to sign - Woodstock
By Zoe Turner • September 22, 2026
England's new landlord register launches 15 Dec 2026 under the Renters' Rights Act. Check your regional deadline and avoid fines up to £40,000
Historic London street with red-brick legal offices, UK
By Adnan Rafique • September 22, 2026
Untangling a historic trust, title restriction and finance issues on a £1.45m commercial property sale - a Woodstock case study
Wildfire burning across dry grassland toward oak trees, with smoke rising — a scene raising fire lia
By Zoe Turner • September 4, 2026
Grass and wildfires are spreading across the UK. Find out when an accidental fire becomes negligence, and who could be liable for the resulting damage.
Modern commercial building with blue glass windows, showcasing a sleek legal office exterior
By Pedro Camilos • August 27, 2026
Expert property solicitor Pedro answers questions on auction purchases, refinancing, title splits and multi-unit property investments. Get practical legal guidance.
Woodstock Legal Services law office sign on the building exterior
By Alastair Dobbie • August 18, 2026
Invested in a care home, hotel or student flat scheme that collapsed? Learn what an unauthorised Collective Investment Scheme means for you.
Row of terraced UK houses with red tiled bay windows and greenery, Woodstock Legal Services branding
By Zoe Turner • July 17, 2026
Section 114 Notices are already landing. Zoe Turner explains what local authorities can demand under the Renters' Rights Act, and how to prepare.
Traditional red brick UK terraced homes with bay windows, Woodstock Legal Services
By Bethany Hudson • July 1, 2026
Using a Lifetime ISA to buy your first home? Bethany Hudson explains how LISA withdrawals work in a property transaction, what to tell us early, and how to avoid costly delays.
The Welsh flag waving against a dark blue sky, showing a red dragon on white and green Woodstock
By Zoe Turner • May 28, 2026
What changes under the Renters’ Rights Act affect Welsh landlords? Learn about anti-discrimination rules, occupation contract updates, compliance deadlines and what does not apply in Wales.
DISCOVER MORE