Although an initial administration extension can be dealt with by consent, if that consent is not valid the extension will also be invalid. This leaves administrators in a difficult position because they will not be in office unless the court remedies the position. Obtaining consent might seem straightforward but obtaining the consent of secured creditors and ensuring the consent of unsecured and preferential creditors (when required) is also valid can be problematic.
In two recent podcasts, we discuss the issues surrounding obtaining secured creditor consent to an administration extension and a recent unreported decision that concerned whether the deemed consent procedure can be used to obtain the consent of unsecured creditors.
Listen to our podcasts at the below links: