The standalone moratorium (CIGA 2020), explained
Introduced during the pandemic and now a permanent fixture, the standalone moratorium is designed for viable companies that need a short, protected window to negotiate a rescue. Unlike administration, directors remain in day-to-day control — supervised by a Monitor who is a licensed insolvency practitioner.
What the moratorium blocks — and what it doesn't
- • Landlord forfeiture
- • Enforcement of security
- • Repossession of hire-purchase goods
- • Winding-up petitions (existing and new)
- • New legal proceedings without court permission
- • Payment of most pre-moratorium debts (payment holiday)
- • Employee wages and salaries
- • Employee redundancy pay
- • Rent under leases during the moratorium
- • Loans and other financial services debts
- • Costs of the moratorium itself
- • Any debt the Monitor consents to being paid
Timeline
Standalone moratorium vs administration
| Dimension | CIGA moratorium | Administration |
|---|---|---|
| Who runs the company | Directors ('debtor-in-possession') | Administrator — directors suspended |
| Supervisor role | Monitor (light-touch) | Administrator (control) |
| Duration | 20 business days initially, up to 40 without consent | 12 months, extendable |
| Cost | Lower — no trading run by an outsider | Higher — trading, sale process, fees |
| Best for | Short breathing space to close a specific rescue deal | Full rescue or realisation process |
Companies often use a CIGA moratorium as a precursor to a CVA or the new Part 26A restructuring plan. See CVA explained for the follow-up route most commonly used.
Frequently asked questions
What is the CIGA 2020 moratorium?
A standalone breathing-space introduced by the Corporate Insolvency and Governance Act 2020, giving eligible companies 20 business days of protection from most creditor action while directors work on a rescue. It is separate from — and can precede — administration or a CVA.
How is it different from the administration moratorium?
The administration moratorium is a by-product of appointing an administrator, who takes over the company. The CIGA moratorium leaves directors in charge (a 'debtor-in-possession' model) under the supervision of a Monitor. It is designed to be lighter-touch and cheaper.
Who is eligible?
UK companies that are, or are likely to become, unable to pay their debts, and where the Monitor considers a moratorium is likely to result in the rescue of the company as a going concern. Various financial-sector entities and certain regulated bodies are excluded.
Who is the Monitor?
A licensed insolvency practitioner who supervises the moratorium. The Monitor certifies eligibility, monitors ongoing viability, and must terminate the moratorium if rescue is no longer likely.
How long does it last?
20 business days initially, extendable by the directors for a further 20 business days without creditor consent, and further extended with creditor consent or court order. Total duration is capped in practice by ongoing viability — the Monitor must terminate if rescue is no longer likely.
What does the moratorium actually block?
Landlord forfeiture, enforcement of security, repossession of hire-purchase goods, winding-up petitions, and new legal proceedings — all without court permission. Pre-moratorium debts are given a 'payment holiday' (except certain excluded categories like wages and financial services debts).
What isn't protected?
Employee wages, redundancy pay, and financial services debts (loans, capital markets debts) are excluded from the payment holiday. The company must keep paying these during the moratorium.
What happens at the end?
The moratorium ends automatically, is extended, or is terminated by the Monitor. If a rescue is in place (CVA, restructuring plan, refinancing) the company continues. Otherwise, administration or liquidation typically follows.