A Less Invasive Alternative to Administration

Directors facing urgent creditor pressure often assume that administration is their only option for immediate legal protection. It is not.

A Company Moratorium provides a statutory shield against creditor action — comparable in its immediate effect to the administration moratorium — without placing the company into an insolvency procedure or transferring control away from the directors. You continue to run the business day-to-day throughout. The monitor — a licensed insolvency practitioner — oversees the process and provides the statutory oversight creditors require, but operational control remains with the management team.

For businesses that are struggling but viable, and where the primary need is time rather than a more intensive restructuring intervention, a moratorium is often a faster, less costly, and less disruptive route than administration.

How a Moratorium Protects Your Business

From the moment the moratorium begins, a legal shield is placed around the company. The protections are immediate and statutory — they do not require creditor consent to take effect.

During the moratorium period, creditors cannot start or continue legal proceedings against the company without court permission. Winding-up petitions cannot be presented. Landlords cannot forfeit leases or repossess property. Lenders cannot enforce security over company assets.

This protected period is designed to create the conditions in which a meaningful rescue can be planned and implemented — whether that is a Company Voluntary Arrangement, a refinancing, new investment, or a solvent sale of the business.

The initial moratorium period is 20 business days. It can be extended for a further 20 business days by the directors without creditor consent, and extended further still — up to a year or more — with creditor approval or a court order, depending on the complexity of the rescue plan.

Expert Advice, Delivered Personally

The Insolvency Practitioners is an independent national firm led by Michael Chamberlain – one of the UK’s most experienced insolvency professionals. With over 30 years of practice and Big 4 pedigree, Mike has acted as monitor and administrator across some of the most complex rescue situations in the UK.

Every director who contacts us speaks to Mike directly – not a junior, not a call handler. That is not something every firm can say.

“A moratorium is about preservation. It’s for the business that has a future but is currently being suffocated by its past. Our role as monitor is to provide the credibility and oversight needed to demonstrate to creditors that a rescue is not just possible — but likely.”

• Mike Chamberlain, Founder & Licensed Insolvency Practitioner

How the Moratorium Process Works

1. Assessment. We review the business to confirm eligibility and establish whether a moratorium provides the right level of protection for the situation.
2. Monitor appointment. A licensed insolvency practitioner is appointed as monitor. The monitor files the required notices with Companies House and the court, triggering the statutory protections immediately.
3. Protected period. The 20-business-day moratorium begins. The directors continue to manage operations; the monitor oversees compliance and confirms on an ongoing basis that rescue remains likely.
4. Rescue planning. During the protected period, we work alongside the directors to implement the restructuring plan — whether that is a CVA proposal, a refinancing, or an alternative route.
5. Exit or extension. At the end of the initial period, the moratorium either concludes having achieved its purpose, is extended where further time is needed, or — if rescue is no longer viable — ends and the appropriate next step is discussed.

Ready to Find Out If a Moratorium Is Right for You?

If your business has a genuine future but needs time to find it, our first conversation will establish quickly whether a moratorium is available to you — and whether it is the right tool.

Not sure whether a moratorium, a CVA, or administration is the right route? Our Rescue My Company page explains all three options and helps you identify which fits your situation.

Start the Conversation

If you need immediate breathing space to protect your business, let’s talk. Request a confidential callback from Mike or a senior member of the team.

Your enquiry is strictly confidential. We provide practical expert advice without the hard sell.

What happens next? Mike or a member of the team will call you to discuss your eligibility for a moratorium and help you understand whether it is the right next step for your business.