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Commercial leases and coronavirus: more (temporary) comfort for tenants who fail to pay rent

Having already placed a moratorium on forfeiture of business leases for non-payment of rent (see here my previous article on the Coronavirus Act), the Government has today announced two more moratoria:

  • Statutory demands and winding-up petitions issued to commercial tenants are to be “temporarily voided”; and
  • Changes are also to be made to CRAR to protect commercial tenants further in the current emergency.

In relation to winding-up petitions based on inability to pay debts, the presentation of a petition and the making of a winding-up order will be precluded where the company’s inability to pay is the result of Covid-19.

As for CRAR, its use will be prohibited unless 90+ days’ rent is unpaid.

Full details will be included in the Corporate Insolvency and Governance Bill and new secondary legislation which is to be introduced on an emergency basis.

Read all about it at:


These measures are designed to prevent “aggressive rent collection”.  Tenants are asked to “pay what they can during the pandemic” and landlords to give them “breathing space”.

The relief though is temporary.  It will expire on 30 June 2020 (unless extended).

Short-term gain, but still long-term pain?

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