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)  EWHC 1406 (Ch) (www.bailii.org/ew/cases/EWHC/Ch/2020/1406.html)
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  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.