Tag Archives: administration

Administrations to the rescue: how can the UK insolvency regime help save businesses and save jobs

The ILA Technical Committee, in conjunction with the CLLS, has produced the attached briefing note that reminds practitioners and businesses of the flexibility of a UK administration to stabilise, protect, and, if necessary, restructure companies. It is vitally important, as businesses across the UK battle the enormous challenges posed by the COVID 19 crisis, that we remember … Continue Reading

Now that the UK is in lockdown, what do the new measures mean for UK businesses?

This note explains which businesses must close and considers how the restrictions on movement of people impact on essential businesses. For insolvency practitioners, the decision to close non-essential businesses will impact on what options are available if a business is in distress and has to go into an insolvency process. It will also impact on … Continue Reading

What is the “key” to validly appointing administrators?

First, there was the HMV case, then Skeggs Beef and SJ Henderson. Following which we had further judicial decision in All Star Leisure and now Keyworker Homes, all of which considered the validity of appointment of administrators using the e-filing system. Keyworker Homes deals with these questions: Can a notice of intention to appoint administrators … Continue Reading

Does e-filing administration appointment documents give you a headache?

Causer v All Star Leisure (Group) Ltd [2019] EWHC 3231 (Ch) (Causer) is yet another case which highlights the issues that e-filing can cause for practitioners when using the system to appoint administrators. The decision in Causer followed Skeggs Beef in concluding that whilst the appointment of an administrator by a QFCH out of hours … Continue Reading

What are the consequences of taking money from a rent deposit if the tenant company is in administration?

If administrators use leased property for the benefit of the administration, rent is payable to the landlord for the period of occupation, as an expense of the administration. In London Bridge Entertainment, the court considered whether the administrators were obliged to top up a rent deposit where the landlord had taken monies from the rent … Continue Reading

Does a company voluntary arrangement permanently vary the terms of a lease?

In this three part blog we highlight three recent court decisions concerning landlord rights and insolvency, which provide cautionary warnings and surprising twists.  The questions we consider are: Does a company voluntary arrangement (“CVA”) permanently vary the terms of a lease? Can a landlord be forced to accept a surrender of a lease? What are the … Continue Reading

When should an NOA be filed to avoid a defective appointment or subsequent court application?

E-filing a notice of appointment of administrators outside of court counter opening hours can impact the validity of an administrator’s appointment. The recent high court rulings in SJ Henderson & Company Limited and Re Triumph Furniture Limited [2019] EWHC 2742, and Re Skeggs Beef Limited [2019] EWHC 2607 (Ch) should serve as a caution that a company, … Continue Reading

Can directors file an out of hours administration appointment?

With the introduction of electronic filing which allows parties to file documents at court 24/7 we consider the recent case of Wright v HMV Ecommerce Limited (2019) in which the court was asked to confirm whether administrators were validly appointed following the directors filing a notice of appointment after the court office was closed.… Continue Reading

Relief from forfeiture – in the balance

The demise of high street retail and the insolvency of household names, including Woolworths, BHS, and more recently Debenhams and Monsoon has been a real headache for property owners. The moratorium created by administration ties the hands of landlords, preventing them from forfeiting leases without first having obtained the consent of the administrator or the … Continue Reading

Beware SoLR Power in Energy Administrations

With the gradual opening of energy supply markets allowing new energy providers to challenge the established providers and bring increased competition to the market, the last two decades have seen an increase in smaller energy providers entering the market and sharing a growing customer base. But what happens to the customers when an energy provider … Continue Reading

HMRC, Insolvency and Post-Budget Preferential Status

Following the Enterprise Act 2002, the preferential status which HMRC had enjoyed in an insolvency was abolished, rendering HMRC the same as any other unsecured creditor. The effect of this was to swell the pot of assets available to be applied to all unsecured creditor claims. Philip Hammond announced in Monday’s budget that HMRC’s preferential … Continue Reading

Government proposes legislation to enhance UK insolvency regime

On 26 August, the Government announced that it will be making changes to UK insolvency legislation. The changes are intended to support distressed companies and address issues highlighted by major company failures and include: the ability for all companies to apply for a moratorium a new insolvency process – the “restructuring plan”, enabling companies to cram … Continue Reading

New Guidance Note Anticipated on Collective Redundancies in Insolvency

The Insolvency Service intends to publish a new guidance notice to address the issues faced by employers in dealing with collective consultation when a company is facing insolvency, following consultation with the industry last year. The guidance note is expected to require insolvency practitioners to notify the government in advance of collective redundancy proposals and … Continue Reading

Taking advice from professionals is not a “get out of jail free” card for directors in the event of insolvency

Directors of a company in financial distress will often turn to their professional advisors to assist in making decisions about the company’s future; whether that be their lawyers, accountants, bank, tax advisors or insolvency professionals. It is often a period of high pressure, where the right or wrong decision may have far-reaching consequences for an … Continue Reading

Tax abuse and insolvency – an HMRC consultation

HM Revenue & Customs (“HMRC”) has issued a consultation entitled “Tax Abuse and Insolvency: A Discussion Document” on how it proposes to confront those who misuse insolvency law as a means of avoiding or evading their tax liabilities. HMRC often describes itself as an “involuntary creditor” because it does not choose to trade with debtors. … Continue Reading

Is the UK insolvency regime equipped for the current political and economic climate?

An effective and well-equipped insolvency and restructuring regime gives confidence to investors and financiers, enabling credit to flow through to businesses and boost economic activity, growth and innovation. In 1999, following the Asian financial crisis, the World Bank carried out a review of the international regimes to establish a set of key principles for effective … Continue Reading

A sobering reminder of the potential pitfalls in doing a “pre-pack” administration

VE Vegas Investors IV LLC and others vs Shinners and others [2018] EWHC 186 Ch Background The applicants were creditors of VE Interactive Limited (In administration) (“VE”). VE encountered financial difficulties and its directors sought insolvency advice from insolvency practitioners at Smith and Williamson (“S&W”) and appointed them to advise on and effect a pre-pack … Continue Reading
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