Following a government announcement on 16 June, the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) (No. 2) Regulations 2021 (the Regulations) have been laid before Parliament, coming into force on 22 June.

On 16 June 2021, the UK government announced that:

Sir Alastair Norris’ High Court judgment of 14 May 2021, confirming the sanctioning of the scheme of arrangement of DTEK Finance PLC in respect of existing bank lenders (the “Bank Scheme”) and the scheme of arrangement of DTEK Energy B.V. in respect of the outstanding notes (the “Note Scheme”) has now been published.

In a recent High Court judgment, Judge Briggs considered the process to be followed where, in insolvency proceedings, a liquidator or administrator assigns a cause of action to another party under s246ZD of the Insolvency Act 1986 (the Act), and the assignee mistakenly brings an application under the Insolvency Rules 2016 (the Rules) when the claim should properly have been brought under Civil Procedure Rules.

Background

There is a faint light at the end of the COVID tunnel for commercial landlords regarding timings and the ability to recover unpaid rent arrears. The UK Government has announced an extension to the current prohibition on forfeiture and winding up petitions, to enable it to introduce new legislation to help manage the £6bn estimated rent arrears.

The announcement provides a clearer pathway for both landlords and tenants, many of whom have paid no, or little rent since March 2020 as a consequence of the various Government imposed lockdowns.

On 26 March 2021 insolvency measures supporting businesses during the pandemic and aiding their recovery were extended.

Once again, the Government has legislated to extend existing insolvency temporary measures through the CIGA (Coronavirus) (Early Termination of Certain Temporary Provisions) Regulations 2020 and the CIGA (Coronavirus) (Suspension of Liability for Wrongful Trading and Extension of the Relevant Period) Regulations 2020. Additionally, the restrictions on forfeiture by landlords have been extended.

The latest announcements

The Government has announced further measures to help commercial tenants who are in arrears as a result of the Covid-19 pandemic, seemingly without much regard for the difficulties also suffered by landlords. Below we explain the latest measures and where this leaves landlords.

The headlines are:

These case summaries first appeared in LexisNexis’ Insolvency Case Alerter. They represent some of the more interesting insolvency decisions to have been published recently.

This summary covers:

1.Re PGH Investments Ltd [2021] EWHC 533 (Ch)

2.Re Mederco (Cardiff) Ltd [2021] EWHC 386 (Ch)

3.Lyle v Bedborough [2021] EWHC 220 (Ch)

4.Re TXU Ltd, Insolvency and Companies Court, 2 March 2021

5.Re Port Finance Investment Ltd [2021] EWHC 378 (Ch)

The FCA has published finalised guidance for insolvency practitioners (IPs) appointed (or looking to be appointed) over regulated firms.

This sets out the FCA’s expectations as to how IPs can ensure firms continue to meet their regulatory obligations both before an appointment and during the course of an insolvency process. It confirms the FCA’s view of what would constitute good practice, as well as linking in to some of the existing statutory obligations on regulated firms and/or IPs.