Corporate Insolvency and Governance Bill (HC Bill 128)

(c) a statement from the directors that, in their view, the company
is, or is likely to become, unable to pay its pre-moratorium
debts, and

(d) 10a statement from the monitor that, in the monitor’s view, it is
likely that the moratorium will result in the rescue of the
company as a going concern.

(2) The rules may make provision about the date on which a statement
mentioned in paragraph (1) must be made.

(3) 15On the filing with the Court of the documents mentioned in paragraph
(1), the moratorium is extended so that it ends at the end of the period—

(a) beginning immediately after the initial period ends, and

(b) ending with the 20th business day after the initial period ends.

(4) Regulations may amend this Article for the purposes of changing the
20list of documents required by paragraph (1).

(5) Regulations may not be made under paragraph (4) unless a draft of the
regulations has been laid before, and approved by a resolution of, the
Assembly.

13CB Extension by directors with creditor consent

(1) 25At any time after the first 15 business days of the initial period the
directors may, if they have obtained creditor consent, extend the
moratorium by filing with the High Court—

(a) a notice that the directors wish to extend the moratorium,

(b) a statement from the directors that all of the following that have
30fallen due have been paid or otherwise discharged—

(i) moratorium debts, and

(ii) pre-moratorium debts for which the company does not
have a payment holiday during the moratorium (see
Article 13D),

(c) 35a statement from the directors that, in their view, the company
is, or is likely to become, unable to pay its pre-moratorium
debts,

(d) a statement from the monitor that, in the monitor’s view, it is
likely that the moratorium will result in the rescue of the
40company as a going concern, and

(e) a statement from the directors that creditor consent has been
obtained, and of the revised end date for which that consent
was obtained.

(2) The rules may make provision about the date on which a statement
45mentioned in paragraph (1) must be made.

(3) On the filing with the Court of the documents mentioned in paragraph
(1), the moratorium is extended so that it ends with the revised end date
mentioned in the statement under paragraph (1)(e).

Corporate Insolvency and Governance BillPage 38

(4) A moratorium may be extended under this Article more than once.

(5) Regulations may amend this Article for the purposes of changing the
list of documents required by paragraph (1).

(6) Regulations may not be made under paragraph (5) unless a draft of the
5regulations has been laid before, and approved by a resolution of, the
Assembly.

13CC Creditor consent for the purposes of Article 13CB

(1) References in Article 13CB to creditor consent are to the consent of pre-
moratorium creditors to a revised end date for the moratorium.

(2) 10The decision as to consent is to be made at a meeting of pre-moratorium
creditors.

(3) A meeting under paragraph (2)—

(a) is to be held at such time, date and place as the directors think
fit, and

(b) 15is to be conducted in accordance with the rules.

(4) The revised end date must be a date before the end of the period of one
year beginning with the first day of the initial period.

(5) In this Article “pre-moratorium creditor” means a creditor in respect of
a pre-moratorium debt—

(a) 20for which the company has a payment holiday during the
moratorium (see Article 13D), and

(b) which has not been paid or otherwise discharged.

(6) In determining for the purposes of paragraph (5) what counts as a pre-
moratorium debt for which the company has a payment holiday during
25the moratorium, Articles 13D(3) and 13HC(1)(b) apply as if the
references to the moratorium were to the moratorium as proposed to be
extended.

(7) Regulations may amend this Article for the purposes of changing the
definition of “pre-moratorium creditor”.

(8) 30Regulations may not be made under paragraph (7) unless a draft of the
regulations has been laid before, and approved by a resolution of, the
Assembly.

13CD Extension by High Court on application of directors

(1) At any time after the first 15 business days of the initial period, the
35directors may apply to the High Court for an order that the moratorium
be extended.

(2) The application must be accompanied by—

(a) a statement from the directors that all of the following that have
fallen due have been paid or otherwise discharged—

(i) 40moratorium debts, and

(ii) pre-moratorium debts for which the company does not
have a payment holiday during the moratorium (see
Article 13D),

Corporate Insolvency and Governance BillPage 39

(b) a statement from the directors that, in their view, the company
is, or is likely to become, unable to pay its pre-moratorium
debts,

(c) a statement from the directors as to whether pre-moratorium
5creditors (as defined by Article 13CC(5) and (6)) have been
consulted about the application and if not why not, and

(d) a statement from the monitor that, in the monitor’s view, it is
likely that the moratorium will result in the rescue of the
company as a going concern.

(3) 10The rules may make provision about the date on which a statement
mentioned in paragraph (2) must be made.

(4) On hearing the application the Court may—

(a) make an order that the moratorium be extended to such date as
is specified in the order, or

(b) 15make any other order which the Court thinks appropriate.

(5) In deciding whether to make an order under paragraph (4)(a) the Court
must, in particular, consider the following—

(a) the interests of pre-moratorium creditors, as defined by Article
13CC(5) and (6), and

(b) 20the likelihood that the extension of the moratorium will result
in the rescue of the company as a going concern.

(6) Paragraph (7) applies where—

(a) an application under this Article is made, and

(b) apart from that paragraph, the moratorium would end at a time
25before the application has been disposed of.

(7) The moratorium—

(a) does not end at the time mentioned in paragraph (6)(b), and

(b) instead, ends—

(i) in a case in which the Court makes an order under
30paragraph (4)(a), in accordance with the order;

(ii) otherwise, when the application is withdrawn or
disposed of.

(8) A moratorium may be extended under this Article more than once.

(9) Regulations may amend this Article for the purposes of changing the
35list of documents required by paragraph (2).

(10) Regulations may not be made under paragraph (9) unless a draft of the
regulations has been laid before, and approved by a resolution of, the
Assembly

13CE Extension while proposal for CVA pending

(1) 40Paragraph (2) applies where—

(a) at any time, the directors make a proposal under Part 2
(company voluntary arrangements), and

(b) apart from that paragraph, the moratorium would end at a time
before the proposal is disposed of.

(2) 45The moratorium—