This article was originally published on The Gazette, and the original article can be found online here.
Substantive amendments to the existing insolvency rules come into force in April. Olivia Bridger, of Ashfords, explains the key changes.
Question
We have discovered a serious structural defect in a development we completed about seven years ago. All the indications are that this is due to defective design by the design and build contractor. The contractor is insolvent. Is there anything that we can do?
Answer
- On 29th September 2004 the Trustees of the Ashtead United Charity allocated Mrs Janet Watts accommodation in an almshouse, in fact one of 14 residential flats the Charity owned at Ashstead in Surrey. In May 2015 they issued proceedings for possession based on the allegations that Mrs Watts had acted in an anti-social manner, swearing, spitting, and aggression. This was a breach of the terms of the Appointments Letter under which she was allocated the property.
The Facts
An administrator was appointed over a company out of court and the administration extended on a handful of occasions. The administrator was then replaced by block transfer, but the administration subsequently expired before it was concluded.
The new administrator therefore applied for a new administration order to apply retrospectively from the date of expiry of the old order.
Summary
The court was prepared to provide for immediate release of administrators from office and to wind up a company without presentation of a petition.
The Facts
Administrators applied to court for their release, the winding up of the company and their appointment as liquidators.
The company’s remaining asset was a leasehold interest with an ultimate landlord, the immediate landlord having surrendered its interest.
Summary
The case provides guidance for liquidators as to the appropriate exercise to conduct when deciding whether the threshold of 25% in value of creditor claims has been reached in support of a request for a creditors’ meeting under s 171.
Key point
- A liquidator is not required to apply a ‘strict proof’ test to a creditor’s claim at the requisition stage of a creditors meeting.
The facts
In November 2014, the company entered into a creditor’s voluntary liquidation.
The Investment Bank Special Administration Regime (SAR) was introduced in 2011 in response to difficulties faced in the Lehman Brothers administration. Following a review of the regime by Peter Bloxham in 2014, and a Government consultation in 2016, the Treasury has introduced draft regulations to improve the regime - The Investment Bank (Amendment of Definition) and Special Administration (Amendment) Regulations 2017.
In two months' time the Insolvency (England and Wales) Rules 2016 will come into force (with effect from 6 April 2017). This date has been long in the making the first draft of the new rules was published in September 2013.
The new rules are not intended to change the law. Their main aim is to consolidate provisions in order to reduce repetition, ensure that there is a more logical structure and modernise and simplify the language (including gender neutral drafting).
This briefing highlights a few of the key changes.
This is the third in a series of articles highlighting the changes to be brought in by the Companies (Winding Up and Miscellaneous Provisions) (Amendment) Ordinance 2016 (Amendment Ordinance). Since our last article, 13 February 2017 has been announced as the date when the Amendment Ordinance will come into effect. The Amendment Ordinance makes amendments to the Companies (Winding Up and Miscellaneous Provisions) Ordinance (CWUMPO) and the Companies (Winding Up) Rules (CWUR).