Business rescue and insolvency options ... Rule of six
New moratorium
- On the cards since 2016 but introduced on 26 June 2020
- No legal action for 20 days
- Can be extended by up to 12 months
- Company has to be unable to pay its debts
- Monitor (who has to be an IP) oversees the process who has to state:
- Company is likely to be rescued
- Has cash flow to pay future liabilities and ongoing finance costs - If no monitor must bring the moratorium to an end
