Receivership/Administration

Receivership/Administration

1. Receivership

   • effect
     • company dies
     • unsecured creditors get nothing
     • preferential creditors get a little
   • duty of receiver
     • primarily to the creditors
     • company
       • Medforth v Blake
         • has to take company's interests into account
     • employees
       • qualifying liabilities
         • contract adopted
         • 14 days without dismissal
         • s57
   • pre 2002
   • Post 2002
     • Capital market
     • utilities
     • PPP's
     • IA s72
     • Urban Regeneration
     • Scoial Landlords
     • Railways
     • Prescribed Part
       • set aside for unsecured creditors
         • Airbase Thornley v HMRC
           • Not if already secured

2. Administration

   • pre 2002 rules retained
     • water companies
     • railways
     • Air-traffic control
     • London Underground
     • building Socities
     • Part II IA
   • Enterprise Act 2002
     • Out of court appointment
       • para 15
       • Pre ranking charges
         • take into account
           • holder consent
           • 2 business days notice
       • quicker and cheaper
     • Administrator should
       • 1. Rescue the company
       • 2. Pay creditors
       • 3. Pay 1 or more creditors
       • Sched B1 IA
     • Removes taxes/crown as preferential creditor
     • court appointment
       • para 35
       • properties abroad?
       • no need to proove compnay cannot pay debts
     • Powers of administrator
       • report director disqualifications within 6 months
       • Sched 1 IA
       • investigate antecedent transations
       • dispose of company assets
       • complete in 12 months
         • para 76(1)
       • sell business to prepack