Moratoriums provide breathing space for companies. They provide 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.
A Monitor, typically an insolvency practitioner, will be appointed to support and monitor the directors during the moratorium.
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.
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.