With the fallout from the pandemic hitting many businesses, those considering insolvency should look at the broad gamut of options on offer to avoid winding up the company. Matthew Padian, managing associate at Stevens & Bolton LLP, explains
Since the first UK lockdown, businesses have benefitted from a slew of government measures designed to steer them through the subsequent economic crisis. This includes the moratorium on landlords forfeiting commercial leases for non-payment of rent, the furlough scheme, and business rates relief for retail, hospitality and leisure businesses for the 2020/21 tax year.
Additionally, there have been restrictions on winding-up petitions and a so-called ‘suspension’ of the wrongful trading laws for certain periods, as well as funding via grants and coronavirus loans.
However, as matters stand (noting the extension rumours due to the roadmap to the end of lockdown), these measures are expected to ease soon, as pressure mounts for a return to ‘normal’. So, what risks might businesses face once support measures end? And, what can they do to weather the storm?
