The current stay on winding-up petitions being presented where a company cannot pay its debts due to Covid-19 was set to end on 31st December 2020. However, that has now been extended to 30th March 2021 and time will tell if it will be extended once again.
Whilst this is likely to be a welcome relief for many companies, it will not be the case for creditors and the true cost of the pandemic is really yet to be known. Once the stay is eventually lifted, we suspect it may lead to a flurry of petitions and an inevitable backlog with the courts.
Natasha Guest is a Senior Associate in Berwins' Dispute Resolution team.
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