Article 5 Administrator’s proposals

in paragraph (2)—

after paragraph (2) insert—

“(2A)

In this Part—

(a)

“pre-administration costs” are—

(i)

fees charged, and

(ii)

expenses incurred,

by the administrator, or another person qualified to act as an insolvency practitioner, before the company entered administration but with a view to its doing so; and

(b)

“unpaid pre-administration costs” are pre-administration costs which had not been paid when the company entered administration.

(2B)

A statement of pre-administration costs complies with this paragraph if it includes—

(a)

details of any agreement under which the fees were charged and expenses incurred, including the parties to the agreement and the date on which the agreement was made,

(b)

details of the work done for which the fees were charged and expenses incurred,

(c)

an explanation of why the work was done before the company entered administration and how it would further the achievement of an objective in sub-paragraph (1) of paragraph 4 in accordance with sub-paragraphs (2) to (4) of that paragraph,

(d)

a statement of the amount of the pre-administration costs, setting out separately—

(i)

the fees charged by the administrator;

(ii)

the expenses incurred by the administrator;

(iii)

the fees charged (to the administrator’s knowledge) by any other person qualified to act as an insolvency practitioner (and, if more than one, by each separately); and

(iv)

the expenses incurred (to the administrator’s knowledge) by any other person qualified to act as an insolvency practitioner (and, if more than one, by each separately),

(e)

a statement of the amounts of pre-administration costs which have already been paid (set out separately as under sub-paragraph (d)),

(f)

the identity of the person who made the payment or, if more than one person made the payment, the identity of each such person and of the amounts paid by each such person set out separately as under sub-paragraph (d),

(g)

a statement of the amounts of unpaid pre-administration costs (set out separately as under sub-paragraph (d)), and

(h)

a statement that the payment of unpaid pre-administration costs as an expense of the administration is—

(i)

subject to approval under Rule 2.068A, and

(ii)

not part of the proposals subject to approval under paragraph 54.

(2C)

This paragraph applies where it is proposed that the administration will end by the company moving to a creditors’ voluntary liquidation; and in that case, the statement required by paragraph (2)(m) shall include—

(a)

details of the proposed liquidator;

(b)

where applicable, the declaration required by Article 195; and

(c)

a statement that the creditors may, before the proposals are approved, nominate a different person as liquidator in accordance with paragraph 84(6)(a) and Rule 2.118(3).”.

after paragraph (5) insert—

“(5A)

Where proposals are deemed under paragraph (5) of this Rule to have been approved, the administrator shall, forthwith after expiry of the period set out in Rule 2.038(1), give notice of the date on which they were deemed to have been approved to the registrar (on Form 2.18BA), the court and the creditors; and a copy of the proposals shall be attached to the notice given to the court and to creditors who have not previously received them”.

in paragraph (6), for “10 ” insert “7 business”.