C1F1PART 1AMoratorium
Pts. 1-5 modified by S.R. 2004/307 (as amended (1.10.2006) by Limited Liability Partnerships (Amendment) Regulations (Northern Ireland) 2006 (S.R. 2006/377), reg. 3, Sch. 2; (temp.) (27.4.2020 retrospective) by virtue of Corporate Insolvency and Governance Act 2020 (c. 12), Sch. 11 para. 8(1)(2), 14 (with ss. 2(2), 5(2)); (26.6.2020) by The Limited Liability Partnerships (Amendment etc.) Regulations 2020 (S.I. 2020/643), reg. 1(1), Sch. 2 (with reg. 3))
CHAPTER 2Obtaining a moratorium
Obtaining a moratorium by filing documents at High CourtC7C213B
1
This Article applies to an eligible company that—
a
is not subject to an outstanding winding-up petition, and
b
is not an overseas company.
2
The directors of the company may obtain a moratorium for the company by filing the relevant documents with the High Court (for the relevant documents, see Article 13BC).
3
For the purposes of this Chapter a company is “subject to an outstanding winding-up petition” if—
a
a petition for the winding up of the company has been presented, and
b
the petition has not been withdrawn or determined.
Obtaining a moratorium for company subject to winding-up petitionC613BA
1
This Article applies to an eligible company that is subject to an outstanding winding-up petition.
2
The directors of the company may apply to the High Court for a moratorium for the company.
3
The application must be accompanied by the relevant documents (for the relevant documents, see Article 13BC).
4
On hearing the application the Court may—
a
make an order that the company should be subject to a moratorium, or
b
make any other order which the Court thinks appropriate.
5
The Court may make an order under paragraph (4)(a) only if it is satisfied that a moratorium for the company would achieve a better result for the company’s creditors as a whole than would be likely if the company were wound up (without first being subject to a moratorium).
Obtaining a moratorium for other overseas companiesC313BB
1
This Article applies to an eligible company that—
a
is not subject to an outstanding winding-up petition, and
b
is an overseas company.
2
The directors of the company may apply to the High Court for a moratorium for the company.
3
The application must be accompanied by the relevant documents (for the relevant documents, see Article 13BC).
4
On hearing the application the Court may—
a
make an order that the company should be subject to a moratorium, or
b
make any other order which the Court thinks appropriate.
The relevant documents13BC
1
For the purposes of this Chapter, “the relevant documents” are—
a
a notice that the directors wish to obtain a moratorium,
b
a statement from a qualified person (“the proposed monitor”) that the person—
i
is a qualified person, and
ii
consents to act as the monitor in relation to the proposed moratorium,
c
a statement from the proposed monitor that the company is an eligible company,
d
a statement from the directors that, in their view, the company is, or is likely to become, unable to pay its debts, and
2
Where it is proposed that more than one person should act as the monitor in relation to the proposed moratorium—
a
each of them must make a statement under paragraph (1)(b), (c) and (e), and
b
the statement under paragraph (1)(b) must specify—
i
which functions (if any) are to be exercised by the persons acting jointly, and
ii
which functions (if any) are to be exercised by any or all of the persons.
3
The rules may make provision about the date on which a statement comprised in the relevant documents must be made.
4
Regulations may amend this Article for the purposes of adding to the list of documents in paragraph (1).
5
Regulations may not be made under paragraph (4) unless a draft of the regulations has been laid before, and approved by a resolution of, the Assembly.
Beginning of moratorium and appointment of monitor13BD
1
A moratorium for a company comes into force at the time at which—
a
in the case of a company to which Article 13B applies, the relevant documents are filed with the High Court under paragraph (2) of that Article;
b
in the case of a company to which Article 13BA applies, an order is made under Article 13BA(4)(a);
c
in the case of a company to which Article 13BB applies, an order is made under Article 13BB(4)(a).
2
On the coming into force of a moratorium, the person or persons who made the statement mentioned in Article 13BC(1)(b) become the monitor in relation to the moratorium.
Obligations to notify where moratorium comes into force13BE
1
As soon as reasonably practicable after a moratorium for a company comes into force, the directors must notify the monitor of that fact.
2
As soon as reasonably practicable after receiving a notice under paragraph (1), the monitor must notify the following that a moratorium for the company has come into force—
a
the registrar,
b
every creditor of the company of whose claim the monitor is aware,
c
in a case where the company is or has been an employer in respect of an occupational pension scheme that is not a money purchase scheme, the Pensions Regulator, and
d
in a case where the company is an employer in respect of such a pension scheme that is an eligible scheme within the meaning given by Article 110 of the Pensions (Northern Ireland) Order 2005, the Board of the Pension Protection Fund.
3
A notice under paragraph (2) must specify—
a
when the moratorium came into force, and
b
when, subject to any alteration under or by virtue of any of the provisions mentioned in Article 13C(3) or (4), the moratorium will come to an end.
4
If the directors fail to comply with paragraph (1), any director who did not have a reasonable excuse for the failure commits an offence.
5
If the monitor without reasonable excuse fails to comply with paragraph (2), the monitor commits an offence.
Pt. 1A inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), ss. 4(1), 49(1) (with ss. 2(2), 5(2))