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

... helping FSB members through difficult times

McTear Williams & Wood Brochure