An administrators’ appointment automatically ends after one year, unless steps are taken to extend it. The Enterprise Act introduced a new streamlined process for moving quickly and easily from administration to creditors’ voluntary liquidation, just by filing a notice at Companies House under para 83(3) Sch B1 of the Insolvency Act (IA)1986. Problems have arisen where that notice has been filed very late in the day and not received before the administrators’ term of office automatically ends.
In a blow to administrators that will surely impact on the timings of any administration, most particularly those involving a large property portfolio, HHJ Purle, sitting in the High Court, has handed down a decision that will have ramifications potentially as serious as those of Re Trident Fashions for administrators in considering how long to remain in office, or indeed whether to accept an appointment at all.
In a judgment given on 25 January, the European Court of Justice has ruled in case C278-05 - Robins and Others v Secretary of State for Work and Pensions (2007) that the UK Government failed adequately to implement a European Insolvency Directive dating back to the 1980’s, which was designed to safeguard pension scheme members’ benefits in the event that their employers became insolvent. However, the ECJ also went on to rule that the United Kingdom Government need not necessarily fund the lost pension rights in full or in part.
Unless you have been hiding in an igloo in Antarctica for the last year you could not possibly have missed the media furore over the huge pension liabilities of eminent companies that have become insolvent. BHS, a venerable British retailer, is the most high profile after recently entering administration with an estimated pensions deficit of £571m.
From 6 April 2016, debtors in England and Wales who wish to enter bankruptcy will need to apply online and will no longer be able to petition the Court. The final form statutory instruments to introduce the necessary changes were published on 22 February 2016.
Three former directors of failed UK parcel delivery company City Link have recently been delivered the bad news that they will face criminal charges over redundancies made during the Christmas period last year. They have been charged with failure to notify the Secretary of State of the proposed redundancy of City Link’s employees as required under section 193 of the Trade Union and Labour Relations (Consolidation) Act 1992. Notification is normally given to the Government by submitting an HR1 form to the Insolvency Service
Did you know that if a company is listed on the Interim Permission Consumer Credit Register that the directors of the company need the written consent of the FCA before they can file a notice of intention to appoint administrators (“NOI”), and failure to obtain FCA consent renders any subsequent appointment invalid?
Most businesses that; offer goods or services on credit, lend money to consumers, or provide debt solutions and advice to consumers will be carrying out consumer credit activities, and may well have an interim permission and be listed on the Consumer Credit Register.
In the latest decision on COMI (Northsea Base Investment Limited & ors [2015] EWHC 121 (Ch)), the English Court had to determine the centre of main interest for a group of companies registered in Cyprus, but where the operations of the companies were managed by a shipping agent in London.
Invoice finance has dominated the lending landscape in 2014 and has outperformed all other types of business lending in the UK. We examine below many issues which may arise in the restructuring of those businesses funded by invoice discounters.
1. Isn’t invoice discounting just a form of finance like any other?
The UK government has just proposed a number of amendments to the Enterprise and Regulatory Reform Bill (currently being considered by Parliament) which will impact on IT suppliers if they become law.
Bill Amendments