On 21 July 2020, the Minister of Finance, Economic Planning and Development issued the Insolvency (Extension of Time During COVID-19 Period) Regulations 2020 (Extension of Time Regulations) under the Insolvency Act 2009 (Insolvency Act) (GN 163 of 2020).
The Extension of Time Regulations amend sections 237 and 261 of the Insolvency Act which regulate watershed meetings and the execution of deeds of company arrangement respectively.
Regarding watershed meetings under section 237 of the Insolvency Act 2009, the Extension Regulations provide that an administrator may convene the watershed meeting not later than 17 August 2020 where the time period for convening a watershed meeting has expired, or fell wholly or partly during (i) the COVID- 19 period or (ii) a period of 30 days after the COVID-19 period has lapsed. It is to be noted that the Extension of Time Regulations has defined the term 'COVID-19 Period' as the period which started on 23 March 2020 and ended on 01 June 2020.
Insofar as the question of deeds of company arrangements are concerned, the Extension of Time Regulations declare that the administrator of a deed of company arrangement may execute such a deed not later than 7 September 2020 where the deadline for the execution of a proposed deed of company arrangement expired, or fell wholly or partly during (i) the COVID- 19 Period or (ii) a period of 30 days after the COVID-19 Period has lapsed.
Originally published by Appleby, 10 August 2020
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