COVID‐19: a global moratorium for corporate bonds?

This chapter proposes emergency legislation to temporarily extend the maturity of corporate bond debt in response to the financial distress triggered by the COVID‑19 crisis. Recognizing that conventional court-supervised insolvency and reorganization procedures may prove too slow, costly, and overwhelmed in a systemic crisis, the authors advocate a statutory moratorium applicable to English law-governed bonds. The aim is to preserve value by giving viable firms time to stabilize without triggering unnecessary insolvency proceedings. The paper addresses legal feasibility, including potential human rights objections, and argues that the intervention would be proportionate and in the public interest. The proposal represents a non-court-based, time-limited solution tailored to the unique challenges of the pandemic.