Moratorium

Part of our Rescue and Recovery options can involve us seeking moratoriums for our clients.

A moratorium is a legal procedure to pause legal action being taken against a company by its creditors to allow time to take stock and refinance or restructure the business.

Why are Moratoriums Used?

Moratoriums provide breathing space for companies who may be in financial difficulty. They provide financial protection from creditors whilst the company explores rescue options in the hope of avoiding a formal insolvency procedure.

During the period of the moratorium no legal action or winding up can be commenced or continued with.

The existing directors remain in control of the company throughout the moratorium.

The length of the moratorium is fixed at 28 days but can be extended for a further 28 days with the court’s consent. If you have any questions about moratoriums or want further information, make sure you contact us.

What Happens During a Moratorium?

During a moratorium, a Monitor, typically an insolvency practitioner such as BRI Business Recovery and Insolvency will be appointed to support and monitor the directors during the moratorium period.

A moratorium is commenced by gaining the consent and agreement of an insolvency practitioner (the Monitor) to the likely rescue plan, thereafter, filing notice and other documents in court.

BRI Business Recovery and Insolvency on Moratorium

At BRI Business Recovery and Insolvency, we can help organisations from all over the country when it comes to rescue and recovery, one of these areas being moratoriums.

Contact us if you would like further information and assistance regarding any aspect of your business, including moratoriums. There is no charge for doing so and it is without obligation.