Moratorium Chapter 4: sets out the effect of moratorium on the company and its creditors Effects on creditors
Except in certain circumstances (e.g. a director presenting a winding-up petition, or a public interest winding-up petition presented by the Secretary of State) no insolvency proceedings can be commenced against the company during the moratorium period. If the directors intend to commence insolvency proceedings, they must notify the monitor. Except with the leave of the court, no steps may be taken to enforce any security over the company’s property (unless it is a security created under a financial collateral arrangement or a step to enforce a collateral security charge) or repossess any goods in the company’s possession under any hire-purchase agreement. No other proceedings or other legal process can be commenced or continued during the moratorium, except those before an employment tribunal (or arising therefrom), those relating to claims between an employer and a worker, or those with the court’s permission (which cannot be for the enforcement of pre-moratorium debts for which the company has a payment holiday).
	A landlord may not exercise a right of forfeiture by peaceable re-entry (a right of irritancy in Scotland) in relation to premises let to the company, except where the court gives permission.
	While in force the moratorium prevents a floating charge from crystallising and prevents restrictions being imposed on the disposal of any of the company’s property. If, due to the operation of the moratorium, the holder of a floating charge is prevented from giving notice that would have the effect of causing the floating charge to crystallise, or imposing restrictions on the disposal of the company’s property, the holder of the floating charge can give the relevant notice as soon as practicable after the end of the moratorium (or it later, the date it is notified of the end of the moratorium).
	Security may only be given over a company’s assets during the moratorium, and will only be enforceable, if the monitor consented to the security being given because the monitor believed that the grant of security would support the rescue of the company as a going concern.
	The directors of the company must notify the monitor before presenting a petition to wind the company up; before making an administration application; or before appointing an administrator; or before recommending that the company passes a resolution for voluntary winding up. Failure to do so without reasonable excuse would constitute a criminal offence.