The Department for the Economy issued an update last month in which it was announced that, following the lapse of the temporary rules relating to the company moratorium procedure (which gave companies in financial difficulties some “breathing space” to allow them to explore rescue and restructuring options free from any creditor action), permanent rules regarding the issuing of new Creditors’ Winding Up Petitions were being reintroduced and would be brought into operation from 13 March 2023.
However, we were awaiting new guidance from the Bankruptcy Court on how this would be put in place. This guidance has now been published and can be viewed by clicking – BANKRUPTCY AND COMPANIES MASTER’S COURT NEW CREDITORS’ WINDING UP PETITIONS COVID – 19 Guidance – 13 March 2023
The guidance states that new Creditors’ Winding Up Petitions can be presented from 17 April 2023 provided that the following criteria is met:
- The Petition must be in the new form contained within the provisions of The Insolvency (Amendment) Rules (NI) 2023;
- The subject debt must arise from a court judgment, decree or other similar court order such as a Certificate of Taxation, Tribunal Award which must accompany the Petition when same is being filed with the court – HMRC is the only exception to this rule; and
- The Petition must be grounded on a formal demand dated on or after 13 March 2023.
The guidance in Northern Ireland is unique to this jurisdiction. The rest of the UK has, for some time now, been operating without any additional guidance or restrictions on grounds for the presentation of petitions. We expect that the guidance in Northern Ireland will be updated again later this year but it is anticipated that the current guidance will be in place until the early autumn at least.
Editorial by 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
Kathryn McIvor, Solicitor, Litigation
Kathryn works within the Litigation team at Mills Selig specialising in debt recovery actions.
Kathryn also assists Mills Selig partner, Richard Craig, as part of the Restructuring and Insolvency team, providing advice to companies, individuals and Insolvency Practitioners.
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