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The insolvency moratorium is confined to the corporate debtor and cannot be extended by adjudicatory bodies to subsidiaries, directors, promoters, managers or personal guarantors unless the statute expressly provides otherwise. The text explains that this limited scope preserves consumer remedies against respondents who are not protected by a statutory moratorium. A consumer complaint may therefore continue against non-corporate-debtor respondents, whose liability must be determined on the pleadings and objections rather than being excluded at an interlocutory stage. Proceedings against the corporate debtor remain subject to the applicable moratorium.
The insolvency moratorium is confined to the corporate debtor and cannot be extended by adjudicatory bodies to subsidiaries, directors, promoters, managers or personal guarantors unless the statute expressly provides otherwise. The text explains that this limited scope preserves consumer remedies against respondents who are not protected by a statutory moratorium. A consumer complaint may therefore continue against non-corporate-debtor respondents, whose liability must be determined on the pleadings and objections rather than being excluded at an interlocutory stage. Proceedings against the corporate debtor remain subject to the applicable moratorium.
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