227C. Effect of application for a judicial management order

Question 1

227C. Effect of application for a judicial management order

Answer 1

General overview
[227C.01] Whilst a company is restructuring its debts with its various creditors, the whole process may be derailed if one or more of its creditors commence winding up proceedings against the company, or puts pressure upon the company by enforcing any charge or repossesses any goods under a hire-purchase agreement. To enable a viable company to rehabilitate, it is crucial that a moratorium is put in place to stave off the creditors: Re Atlantic Computer Systems plc