There has been a restriction on the issuing of Creditor Winding Up Petitions since 2020 when a company moratorium procedure was introduced, giving companies in financial difficulties some “breathing space” to allow them to explore rescue and restructuring options free from creditor action.
These temporary rules lapsed at the end of March 2022 because the NI Executive was suspended before the permanent rules could be approved and introduced.
Following the enactment of the Northern Ireland (Executive Formation Etc) Act 2022, Departments have powers (albeit limited) to make legislation where it is considered to be in the public interest to do so.
The Department of Justice, in connection with the Department for the Economy and the Lady Chief Justice, has considered these rules and deems them to be in the public interest. Therefore, the procedure that was previously in place and had been agreed by Ministers and the Assembly is being reintroduced. The rules will be brought into operation on 13 March 2023.
Following this development, we await new guidance from the Bankruptcy Master in relation to the lodging of Winding Up Petitions by creditors in the High Court.
Editorial by Richard Craig and Kathryn McIvor
If you have any queries regarding the information provided above, please feel free to get in touch with the Restructuring & Insolvency Team @ Mills Selig
Richard Craig, Partner and Head of Restructuring & Insolvency
Richard is head of the Restructuring and Insolvency team at Mills Selig. His experience and expertise enables him to advise Insolvency practitioners, major lenders, companies, partnerships and individuals on all aspects of restructuring and insolvency.
T: 028 9044 5420
E: Richard.Craig@MillsSelig.com
W: https://millsselig.com/team/richard-craig/
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