Interim moratorium definition

View the related practice notes about Interim moratorium

The moratorium in administration

The moratorium plays an important part in any administration which seeks to rescue a company or allow for the restructure of a business. This Practice Note sets out what the moratorium is, how it applies, and the factors the court will take into account when faced with an application to lift it.The purpose of the moratoriumThe purpose behind the moratorium is to give the company/its administrators breathing space to formulate and implement the proposals, and also to investigate the position of the company, its business and assets. As set out in the section The effect of the moratorium below, the moratorium is a prohibition on proceedings, actions and steps being taken against the company/its property during the applicable period, except with the consent of the administrator (if one is appointed) or the permission, or leave, of the court.There are two types of moratorium in an administration, the moratorium and the interim moratorium, both of which (with some minor exceptions) have a similar effect.When the moratorium appliesThe moratorium applies during the...

The moratorium in administration

The moratorium in administration The moratorium plays an important part in any administration which seeks to rescue a company, or allow for the restructure of a business. This Practice Note sets out what the moratorium is, how it applies, and the factors the court will take into account when faced with an application to lift the moratorium. The purpose of the moratorium The purpose behind the moratorium is to give the company/its administrators breathing space to formulate and implement the proposals, and also to investigate the position of the company, its business and assets. As set out in the below section ‘The effect of the moratorium’, the moratorium is a prohibition on proceedings, actions and steps being taken against the company/its property during the applicable period, except with the consent of the administrator (if one is appointed) or the permission, or leave, of the court. There are two types of moratorium in an administration, the moratorium and the interim moratorium, both of which (with some minor exceptions)...

View the latest UK Parliament Acts documents on Interim moratorium

[SCHEDULE B1 Administration]

(1)     For the purposes of this Act “administrator” of a company means a person appointed under this Schedule to manage the company's affairs, business and property.(2)     For the purposes of this Act—(a)     a company is “in administration” while the appointment of an administrator of the company has effect,(b)     a company “enters administration” when the appointment of an administrator takes effect,(c)     a company ceases to be in administration when the appointment of an administrator of the company ceases to have effect in accordance with this Schedule, and(d)     a company does not cease to be in administration merely because an administrator vacates office (by reason of resignation, death or otherwise) or is removed from office.