Bolt Burdon video


On 23rd April 2020 the government made announcements to introduce further temporary measures to safeguard commercial tenants which changes some of the points made in this recording.

In short, there is going to be a temporary ban on the use of statutory demands and winding up orders where a commercial tenant cannot pay their bills due to coronavirus. This is being included in the Corporate Insolvency and Governance Bill.  Essentially any winding-up petition that claims that the company is unable to pay its debts must first be reviewed by the court to determine why. The law will not permit petitions to be presented, or winding-up orders made, where the company’s inability to pay is the result of COVID-19.

Separately, the government is also laying secondary legislation to provide tenants with more breathing space to pay rent by preventing landlords using Commercial Rent Arrears Recovery (CRAR) unless they are owed 90 days of unpaid rent.

The new legislation to protect tenants will be in force until 30 June, and can be extended in line with the moratorium on commercial lease forfeiture (which is discussed in the recording).