Reed Smith Client Alerts

We know that landlords have been waiting to find out how they can legitimately pursue arrears from their tenants. It’s been a long wait for the publication of the Corporate Insolvency and Governance Bill.
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Insofar as commercial property rent claims are concerned, the crucial points are:

1. A petition for the winding up of a UK registered company on the ground that the company has failed to satisfy a statutory demand cannot be presented where the demand was served between 1 March and 30 June 2020 (although that June date could be deferred if it takes time for the bill to come into force).

2. Landlords won’t be able to present a winding up petition during that same period even following a court judgment unless the landlord as creditor has reasonable grounds for believing that:

(a) coronavirus has not had a financial effect on the company; or

(b) the facts by reference to which the relevant ground applies would have arisen even if coronavirus had not had a financial effect on the company.