11 May 2021
R&I update – May 2021 – 2 of 4 Insights
Re PGH Investments Ltd v Ewing  EWHC 533 (Ch)
As we reported last month, the UK government has extended the restriction on winding up petitions until 30 June 2021. In a recent decision, English courts have observed that they would protect companies from their creditors even further than previously thought, by dismissing a winding up petition when the company argued that COVID-19 had had an indirect financial effect on it.
In this case, coronavirus had prevented the principal debtor from complying with its obligations and this had caused the company's alleged liability to arise (under a guarantee). The company did not, however, produce any documentary evidence to support its assertions.
To discuss the issues raised in this article in more detail, please reach out to a member of our Restructuring & Insolvency team.