Geoff O'Dea
- Published in print:
- 2022
- Published Online:
- May 2022
- ISBN:
- 9780198844747
- eISBN:
- 9780191938030
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198844747.003.0011
- Subject:
- Law, Company and Commercial Law
This Chapter considers the practical approach to using the administration regime under schedule B1 to the Insolvency Act 1986 to implement pre-agreed restructurings. It undertakes an analysis of the ...
More
This Chapter considers the practical approach to using the administration regime under schedule B1 to the Insolvency Act 1986 to implement pre-agreed restructurings. It undertakes an analysis of the practical aspects of a pre-pack sale in administration. The analysis includes an examination of methods of appointment of administrators together with exit options. Administrators’ duties and an examination of Statement of Insolvency Practice 13 and 16 are also considered together with possible methods to challenge administrators’ conduct. The chapter also looks at the recent measures introduced by the Corporate Governance and Insolvency Act 2020, including the restrictions on ‘ipso facto’ clauses, the new moratorium and restrictions on sales in administration to connected parties. Jurisdiction and cross-border recognition of proceedings following Brexit are also considered.Less
This Chapter considers the practical approach to using the administration regime under schedule B1 to the Insolvency Act 1986 to implement pre-agreed restructurings. It undertakes an analysis of the practical aspects of a pre-pack sale in administration. The analysis includes an examination of methods of appointment of administrators together with exit options. Administrators’ duties and an examination of Statement of Insolvency Practice 13 and 16 are also considered together with possible methods to challenge administrators’ conduct. The chapter also looks at the recent measures introduced by the Corporate Governance and Insolvency Act 2020, including the restrictions on ‘ipso facto’ clauses, the new moratorium and restrictions on sales in administration to connected parties. Jurisdiction and cross-border recognition of proceedings following Brexit are also considered.
Rebecca Parry
- Published in print:
- 2018
- Published Online:
- March 2021
- ISBN:
- 9780198793403
- eISBN:
- 9780191927836
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198793403.003.0021
- Subject:
- Law, Company and Commercial Law
A floating charge, of course, increases the likelihood upon the winding up of the debtor that a creditor will receive payment for sums that the creditor has advanced. Conversely, the existence of a ...
More
A floating charge, of course, increases the likelihood upon the winding up of the debtor that a creditor will receive payment for sums that the creditor has advanced. Conversely, the existence of a charge over property reduces the likelihood of payment for creditors, such as those who supplied the property in the first place. Limitations have accordingly been placed on the availability of such charges in order to ensure that any creditor obtaining the advantage of this method of security has earned the priority that it confers. Section 245, which applies only in the context of liquidation and administration, provides that any floating charge that is created within a specified period of the onset of insolvency is void except to the extent that the charge holder advanced value to the debtor at the same time as, or after, the creation of the charge. Unlike many of the other avoidance provisions, the operation of section 245 is automatic and does not depend on an application being made by the liquidator or administrator. An exception to the operation of section 245 applies in the context of financial collateral arrangements.
Less
A floating charge, of course, increases the likelihood upon the winding up of the debtor that a creditor will receive payment for sums that the creditor has advanced. Conversely, the existence of a charge over property reduces the likelihood of payment for creditors, such as those who supplied the property in the first place. Limitations have accordingly been placed on the availability of such charges in order to ensure that any creditor obtaining the advantage of this method of security has earned the priority that it confers. Section 245, which applies only in the context of liquidation and administration, provides that any floating charge that is created within a specified period of the onset of insolvency is void except to the extent that the charge holder advanced value to the debtor at the same time as, or after, the creation of the charge. Unlike many of the other avoidance provisions, the operation of section 245 is automatic and does not depend on an application being made by the liquidator or administrator. An exception to the operation of section 245 applies in the context of financial collateral arrangements.
