The Corporate Insolvency and Governance Bill became law on 26 June 2020 to provide support to businesses, in what has been described as the biggest shake-up of insolvency laws for two decades.
We have previously covered what the Bill includes, here, and although some of the measures come into effect immediately (such as automatic filing extensions), other measures will require additional regulations prior to implementation.
Companies and other types of business registered at Companies House will get more time to file accounts.
The filing deadline will be updated automatically by Companies House, so there is no need to apply for an extension.
There are changes for public companies with a filing deadline between 26 March 2020 and 29 September 2020.
There is a new moratorium giving companies breathing space from their creditors while they seek a rescue. The Act also introduces a new restructuring plan sanctioned by the court that will bind creditors to the plan.
Directors will still need to meet their filing obligations with Companies House and late filing penalties will still be applied where accounts are filed late.
The restructuring plan takes effect when a copy of the court order is delivered to Companies House.
(See Companies House liquidation and insolvency guidance.)
Under secondary legislation, companies will receive an automatic extension for:
Most companies will also be given more time to file their accounts.
More guidance for private companies and other company types will be published once secondary legislation comes into force.
In the meantime, if you would like to discuss these issues, please contact a member of our Restructuring team.
Other government measures already in place to support businesses and workers during the coronavirus emergency can be found in our Business after COVID-19: Transition Knowledge Hub.