24 September, 2021 in Industry News

Changes to Corporate Insolvency and Governance Act 2020

On 29th September 2021 the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 11) Regulations (Northern Ireland) 2021 will come into force in Northern Ireland.

This means that from 1st October 2021, the temporary insolvency measures introduced during the Covid-19 pandemic are to be phased out and creditors will once again be able to issue winding up petitions in respect of debt which now meets the following new conditions;

  1. the debt threshold of £10,000.00 (having previously been £750)
  2. creditors must have sought proposals for payment, giving debtors 21 days for a response before proceeding with a Winding Up Petition.
  3. The debt is not a debt in respect of rent or any similar payment due under a business tenancy which is unpaid due to the financial impact of the pandemic.

What will be welcome news for creditors is likely to present pressure for some debtor companies who are still feeling the financial impact of the pandemic.  

If you have any questions on how this may inpact you or your business, please contact Michael Drumm or Shauna McStravick.

Interested in finding out more? Contact:

Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.