Moratorium Chapter 3: sets out how long a moratorium has effect.
As noted in paragraph 89 above, a moratorium will come into force on the date and time that either the relevant documents are filed at court, or that the court makes the order. A moratorium will end at the end of the 20th business day beginning with the business day after the day on which the moratorium comes into force, unless it is extended or terminated early. For example, if the moratorium came into force on 1 June 2020, unless it were extended, it would end at the end of 29 June 2020. A moratorium cannot be extended once it has come to an end.
	The directors may extend the moratorium for a further 20 business days if they file a notice and certain other documents at court. The first extension cannot happen until 15 business days have passed since the start of the moratorium. Where the directors extend the moratorium without creditor consent, the revised date will be 20 business days after the end of the initial period regardless of when, after the first 15 business days, the notice is filed at court. For example, if the directors file the necessary notice after 17 business days have passed from commencement, the revised moratorium end date will be 40 business days from commencement – not 37 business days. The documents to be filed include statements that: the company is still, or is still likely to become, unable to pay its pre-moratorium debts; that all moratorium debts and pre-moratorium debts from which the company does not have a payment holiday that have fallen due have been met; and that, in the monitor’s view, the rescue of the company is still likely. Creditor consent for such an extension is not required. A moratorium liability is one that was incurred after the beginning of the moratorium and has fallen due.
	Thereafter, the directors may (with consent from the company’s pre-moratorium creditors) file a notice with the court to extend the moratorium, which may then extend beyond 40 business days. The pre-moratorium creditors are creditors of pre-moratorium debts from which the company has a payment holiday, and which have fallen due or may fall due before the proposed revised end date of the moratorium. Directors cannot file the notice until at least 15 business days have passed since the start of the moratorium. This will ensure that creditors have had the chance to experience dealing with the company in moratorium to know whether they wish to consent to the extension. There is no restriction from engaging with creditors in the first 15 business days of a moratorium if the company wishes to do so. Once the required documents referred to in paragraph 92 above (with the addition of a statement from the directors that creditors’ consent has been obtained) are filed at court, the moratorium is extended so that it ends with the revised date agreed with creditors. A moratorium may be extended more than once in this way, subject to not being greater than one year from commencement.
	The directors may also apply to the court to seek an extension of the moratorium beyond 40 business days. This application for an extension cannot be made until at least 15 business days have passed since the start of the moratorium. The same documents as referred to in paragraph 92 (with the addition of a statement from the directors as to whether pre-moratorium creditors have been consulted and, if not, why not) must accompany the application. The court may extend the moratorium to a date specified in the order or may make such order as it thinks appropriate. When considering the application, the court must consider the interests of the pre-moratorium creditors and the likelihood that the extension will result in the rescue of the company as a going concern. A moratorium may be extended more than once in this way. In the course of other relevant proceedings, for example, an application to the court in relation to a scheme of arrangement or a restructuring plan, the court may also order that a moratorium which is in force be extended.
	If the directors make a proposal for a company voluntary arrangement, and the moratorium would have ended before the proposal has been disposed of, then the moratorium will not end until the proposal is disposed of.
	The moratorium will be brought to an end if the company enters a restructuring plan or a scheme of arrangement or if a voluntary arrangement takes effect, or if the company enters an insolvency procedure such as administration or liquidation.
	The directors must notify the monitor of any change to the end of the moratorium. The monitor must then notify the registrar of companies and the company’s creditors of which they are aware. In addition, where the company to which the moratorium relates is or has been an employer in respect of an occupational pension scheme that is not a money purchase scheme, any notice required to be sent to creditors of the company must also be sent to the Pensions Regulator. Where the company is an employer of a pension scheme eligible under section 126 of the Pensions Act 2004, any notice must be sent to the Board of the Pension Protection Fund.