There has been a recent flurry of decisions prompted by COVID-19 in respect of applications to restrain presentation or advertisement of a winding up petition.
This article, originally published on 1st August 2020 in the Corporate Insolvency and Rescue journal, considers the basis upon which an injunction can be obtained and how COVID-19 and the Corporate Insolvency and Governance Bill (‘CIG Bill’) (now Act) has impacted the court’s decisions.
An application for an injunction to restrain either presentation of a winding up petition or notice or advertisement of a winding up petition arises from r 7.24 of the Insolvency (England and Wales) Rules 2006 (IR 2016). The tests applied when restraining presentation and advertisement are broadly the same, however prior to presentation the court has no discretion as to whether to restrain a petition if it would constitute an abuse of process. In advertisement cases the court does have that discretion and so a petition may still be able to proceed.
To read the article please click here.
Authored by Luke Tucker Harrison, co-founding Partner.