The Insolvency Service released the monthly insolvency statistics for April 2021 today. The figures contain a comparison between April 2021 and April 2020, the first full month after the commencement of the first lockdown in March 2020. There has been a significant decline in the number of insolvencies when compared to March 2019, this no doubt largely due to the government measures taken to protect companies and employees. The Insolvency and Governance Act came into law in June 2020 with two new procedures, a moratorium on creditor action and the creation of a restructuring plan, registered at Companies House. Between 26 June 2020 and 30 April 2021, four companies obtained a moratorium and six companies registered a restructuring plan at Companies House. The number of reported insolvencies in April 2021 was largely the same as for March 2021 although, in all case types, the numbers are low when compared to April 2020 and April 2019.
There were 819 Creditor Voluntary Liquidations in April 21, a 12% fall compared to 2020, and 20% fall the year earlier. Administrations were down 48% to 75 for the month, and Company Voluntary Arrangements were down 76% to just 5, presumably due to the high levels of economic uncertainty.
Source Insolvency Service
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