C2C3F1PART 1AMoratorium

Annotations:
Amendments (Textual)

CHAPTER 3Length of moratorium

Extension of moratorium

Extension by High Court on application of directors13CD

1

At any time after the first 15 business days of the initial period, the directors may apply to the High 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 Article 13D),

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 Article 13CC(5) and (6)) have been consulted about the application and if not why not, and

C1d

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 paragraph (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 paragraph (4)(a) the Court must, in particular, consider the following—

a

the interests of pre-moratorium creditors, as defined by Article 13CC(5) and (6), and

b

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

6

Paragraph (7) applies where—

a

an application under this Article is made, and

b

apart from that paragraph, 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 paragraph (6)(b), and

b

instead, ends—

i

in a case in which the Court makes an order under paragraph (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otherwise, when the application is withdrawn or disposed of.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 Article more than once.