Coronavirus and restraint of winding-up petitions

11 Jun 2020

Where a company’s finances have been affected by coronavirus, it can obtain an injunction preventing the presentation of a winding up petition.  Provision to this effect is made in the Corporate Governance and Insolvency Bill.  But at present that remains just a bill and has not yet been enacted as law.  Nonetheless Morgan J in re a Company (Injunction to restrain presentation of petition) [2020] EWHC 1406 (Ch) (

granted an injunction in anticipation that the law would be enacted as set out in the bill.


He was following an unreported decision of Birss J where an injunction to the same effect was granted by reference to what had been said in ministerial statements: Travelodge Ltd v Prime Aesthetics Ltd [2020] EWHC 1217 (Ch).


An applicant will need to adduce evidence of the effect of coronavirus on its finances, and Morgan J required that an undertaking in damages be given. 


Stephen Schaw Miller