An insolvency process introduced into the Insolvency Act 1986 by the Corporate Insolvency and Governance Act 2020 from 26 June 2020. It is designed to allow financially distressed companies (and some other entities) a short breathing space from enforcement action by certain types of creditors while they organise their affairs to make their rescue viable.

A moratorium for up to 40 business days can be obtained without creditor or court consent. With creditor consent the moratorium can endure for up to a year, or longer with a court order.

The moratorium is a "debtor in possession" process in that the entity's management will remain in control of it during the process. However, the functioning of the moratorium is overseen by an insolvency practitioner appointed as a monitor.

The moratorium is only available to entities where the proposed monitor is prepared to certify that the moratorium would be likely to result in the rescue of that entity. Equally, the entity's management must also certify that it is currently or likely to become unable to pay its debts as they fall due.

For more information, see Practice note, The moratorium under Part A1 of the Insolvency Act 1986.