INSOLVENCY PRACTITIONERS will need to apply much earlier if they want extra time to complete a corporate administration after a High Court decision.
Currently an IP can file a request to extend an administration, which lasts 12 months, four weeks before its expiry date.
However, registrars in the companies branch of the High Court are now requesting at least six weeks notice before an extension can be granted, according to law firm CMS Cameron McKenna.
As a consequence, IPs and their solicitors need to plan their extension application well in advance of the expiry of the administration, taking into consideration the complexity and size of the case.
A statement from CMS Cameron McKenna said the increase is also in response to applications filed so late it causes “unwelcome disruption” to the court’s schedule.
Any late filing penalties will come from the IPs’ own pocket as charges incurred are excluded from the cost of the administration.
Practitioners will be excluded from fines and allowed to file an extension late if they have “unusual reasons”. However, there has been no clarification on what those reasons could be.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children