Insolvency Act 1986

[F1 A13 Extension by court on application of directors U.K.

(1) At any time after the first 15 business days of the initial period, the directors may apply to the court for an order that the moratorium be extended.

(2) The application must be accompanied by—

(a) a statement from the directors that all of the following that have fallen due have been paid or otherwise discharged—

(i) moratorium debts, and

(ii) pre-moratorium debts for which the company does not have a payment holiday during the moratorium (see section A18),

(b) a statement from the directors that, in their view, the company is, or is likely to become, unable to pay its pre-moratorium debts,

(c) a statement from the directors as to whether pre-moratorium creditors (as defined by section A12(4) and (5)) have been consulted about the application and if not why not, and

(d) a statement from the monitor that, in the monitor’s view, it is likely that the moratorium will result in the rescue of the company as a going concern.

(3) The rules may make provision about the date on which a statement mentioned in subsection (2) must be made.

(4) On hearing the application the court may—

(a) make an order that the moratorium be extended to such date as is specified in the order, or

(b) make any other order which the court thinks appropriate.

(5) In deciding whether to make an order under subsection (4)(a) the court must, in particular, consider the following—

(a) the interests of pre-moratorium creditors, as defined by section A12(4) and (5), and

(b) the likelihood that the extension of the moratorium will result in the rescue of the company as a going concern.

(6) Subsection (7) applies where—

(a) an application under this section is made, and

(b) apart from that subsection, the moratorium would end at a time before the application has been disposed of.

(7) The moratorium—

(a) does not end at the time mentioned in subsection (6)(b), and

(b) instead, ends—

(i) in a case in which the court makes an order under subsection (4)(a), in accordance with the order;

(ii) otherwise, when the application is withdrawn or disposed of.

(8) A moratorium may be extended under this section more than once.]

Textual Amendments

F1 Pt. A1 inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), ss. 1(1), 49(1) (with ss. 2(2), 5(2))

Modifications etc. (not altering text)

C1 S. A13(2)(d) modified (temp.) (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 4 para. 8(3) (with ss. 2(2), 5(2), Sch. 4 para. 1)