Partner Article

Extension of winding up petition restrictions, R3 response

Eleanor Temple, chair of insolvency and restructuring trade body R3 in Yorkshire and a barrister at Kings Chambers in Leeds, responds to the Government’s decision to extend pandemic business support measures, including the restrictions on issuance of winding up petitions and statutory demands:

“Many companies across the country will appreciate the action the Government has taken today – particularly given the delay to the easing of lockdown announced earlier this week.

“Trading conditions have improved recently, but the Prime Minister’s decision to delay the removal of the final lockdown measures underlines that we’re still in choppy economic waters.

“While the extension of these measures will benefit many companies, as time goes on the Government will need to consider the impact on creditors – who have staff and overheads to pay themselves. Balancing these interests is a difficult task for the Government.

“However, today’s decision also gives directors and business owners a further – and possibly final – window to plan how they will take their businesses forward when these temporary measures end.

“We urge them to use this time to seek advice from a qualified professional – and to do so as early as possible, so they can benefit from the broadest range of options available and have a greater time period to decide how they will move forward.”

This was posted in Bdaily's Members' News section by Emma Kilmurray .