Vol 19 (2022) - Issue 5

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Corbin & King: The UK’s First Reported Contested Standalone Moratorium

Synopsis
Corbin & King is the first reported case involving a contested standalone moratorium. The High Court judgment will be very useful for companies considering the use of the tool in the future and also for insolvency professionals considering taking on the role of monitor. The judgment provides guidance on the degree of latitude a monitor will be afforded with regards to when they 'think' a certain state of affairs exists: and provides further clarity in respect to what is to be regarded as a company being able to pay its debts during a standalone moratorium; when a monitor is under an obligation terminate the moratorium due to it no long fulfilling the requirements; and the court's discretion with regards to the ordering of such a termination.