Rule 1.42 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs) with a moratorium

Notice of Advertisement of end of Moratorium

 

In a CVA with a moratorium which is obtained before a creditors meeting it has been noted from previous Insolvency Rules that the court & the Registrar of Companies must be notified of, the beginning of the moratorium (Rule 1.40) andany extension of the moratorium (Rule 1.41). It is therefore no surprise that Insolvency Rule 1.42 sets out the requirement to give notice to the court, to the registrar of companies and others of the ending of the CVA moratorium (freeze) period.

 

The actual wording of Insolvency Rule 1.42 is reproduced below in bold.

 

Insolvency Rules 1986 - Rule 1.42 - Notice and advertisement of end of moratorium

 

(1) After the moratorium comes to an end, the nominee— 

(a) as soon as reasonably practicable shall cause a notice of its coming to an end and the date on which it came to an end to be gazetted; and

(b) may advertise the notice in such other manner as the nominee thinks fit.

(1A) In addition to the standard contents, the notice under paragraph (1) must state—

(a) the nature of the business of the company;

(b) that a moratorium under section 1A has come to an end; and

(c) the date upon which the moratorium came to an end.

(2)  The nominee shall [as soon as reasonably practicable] give notice of the ending of the moratorium to the registrar of companies, the court, the company and any creditor of the company of whose [address the nominee] is aware and such notice shall specify the date on which the moratorium came to an end.

 

When a CVA moratorium period comes to an end the fact of the ending must be subject of a notice in the London Gazette and a similar notice must be filed with the Registrar of Companies. In addition the creditors f the company must be notified of the end of the moratorium period.