The application of the ‘coronavirus test’ in winding up proceedings (Newman v Templar Corporation)

Article summary

Restructuring & Insolvency analysis: In this judgment, Deputy Insolvency and Companies Court Judge (ICCJ) Agnello QC provided some helpful observations on the amended provisions in Schedule 10 to the Corporate Insolvency and Governance Act 2020 (CIGA 2020), and the application of the ‘coronavirus (COVID-19) test’ as set out in CIGA 2020, Sch 10, para 2 (4)(a)–(b), and CIGA 2020, Sch 10, para 5. The only other main reported decision dealing with the coronavirus test is that of ICCJ Barber in Re A Company (application to restrain advertisement of a winding up petition). In Newman, Deputy ICCJ Agnello QC approved of the approach taken by ICCJ Barber in Re A company and confirmed that the threshold requirement found at CIGA 2020, Sch 10, para 5(1)(c) in satisfying the coronavirus test is intended to be a low one. While the threshold test may be low, the judge differentiated this case from the case in Re A Company. ICCJ...