Rule 1.41 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs) with a moratorium

Notice of Extension of the Moratorium period from that which initially obtained

 

The law set out in Insolvency Rule 1.41 makes the sensible requirement that if the moratorium (freeze) period is to be lengthened from that initially advised to the court then the fact of the extension of the freeze on creditors enforcement actions must,

 

- be notified to the Registrar of Companies, and

 

- be notified to the court

 

 

The actual wording of Insolvency Rule 1.41 is reproduced below in bold.

 

Insolvency Rules 1986 - Rule 1.41 - Notice of extension of moratorium

 

(1)  The nominee shall [as soon as reasonably practicable] notify the registrar of companies and the court of a decision taking effect pursuant to paragraph 36 of Schedule A1 to the Act to extend or further extend the moratorium and such notice shall specify the new expiry date of the moratorium.

(2)  Where an order is made by the court extending or further extending or renewing or continuing a moratorium, the nominee shall [as soon as reasonably practicable] after receiving a copy of the same give notice to the registrar of companies and with the notice shall send [a copy] of the order.

 

Under Insolvency Rule 1.41 the Court and the Registrar of Companies must be notified if the CVA moratorium period is extended from that initially notified to those two bodies.