44:
868:
enables the administrator to realise a greater amount for the assets due to business continuity and that the goodwill of the company is preserved. The employees of the company are also usually transferred to the new company, preserving jobs. Pre-packs have attracted criticism because of the appearance it gives to unconnected parties that the company has just continued without its creditors. SIP 16 was introduced in
January 2009 to assist Insolvency Practitioners in pre-pack cases. It was designed to make the process more transparent for creditors, and to ensure that fair value was obtained for the assets.
684:" to temporarily preserve the company's assets while the winding-up application is pending. Administrators are required to be registered liquidators since they have broad powers to deal with company property. The appointment of an administrator "freezes" any legal proceedings against the company and control of the company is given entirely to the administrator. Directors of the company are prohibited from acting in their capacity as directors for the duration of the administration, while administrators are personally liable for any debts incurred by the company in the course of the administration.
677:), or be returned to the control of the directors. After an administrator is appointed, there are two meetings of creditors, held within tight time-frames, with the second being the most important as it will decide whether to enter into a deed of company arrangement (DOCA), end the administration or wind the company up. The DOCA is a binding agreement between a business and its creditors overseen by a deed administrator relating to how the company's assets will be managed to ensure better returns for its creditors than an immediate winding up.
785:
retain their right to appoint an administrative receiver, but all purported rights to do so created after that date will be construed as rights to appoint an administrator, subject to certain specific, rare exceptions. A court order is issued that forbids any form of legal or insolvency action without the court's permission. An application to the court for an administration order may be made by the company, the directors, a creditor or any combination of them. The
837:
751:. If this proves impossible the administrator must work to maximise the recovery of the creditors as a whole. Only then may the administrator attempt to realise property in favour of one or more secured creditors. A firm is usually in administration for no more than 12 months, after which an extension from the court can be produced at the courts discretion. Administration is analogous to going into "
951:) measures take place to prevent or lessen the effect of insolvency. The basic components of those measures include providing special loans and subsidies; exemptions for issuing a credit or taxation; restructuring of the business's debts and capital; change of organizational and production structure of the debtor; full or partial nationalization; others.
43:
875:
announced a study into corporate insolvencies, with particular focus on pre-pack administrations, to report on whether the insolvency market is operating efficiently, with enough freedom of competition between insolvency practitioners and whether consumers and creditors are being treated as fairly as
599:
Most countries distinguish between voluntary (board-decided) and involuntary (court-decided) receivership. In voluntary administrative receivership, the administrator is appointed by the company directors. In involuntary administrative receivership, the administrator is appointed by a judicial court.
867:
A pre-pack is the process of selling the assets of a company immediately after it has entered administration. It is sometimes the case that the previous directors or management purchase the assets of the company from the administrator and set up a new company. This process has advantages in that it
784:
to appoint an administrative receiver to realise assets in his favour, and also to block an administration order sought by a borrower. This was felt to be too favourable to the floating charge holder at the expense of other creditors. Holders of a floating charge created prior to 15 September 2003
771:
The administrator is an officer of the court and an agent of the company, and is not personally liable for any contracts they make on behalf of the company. They have the power to do anything necessary or expedient for the management of the affairs, business and property of the company. The new
706:
provides mechanisms for consumer and general proposals in order to give time for an insolvent person to be able to reorganize his affairs. For insolvent companies (or affiliated groups) owing more than $ 5 million, a more flexible regime is available under the
759:
concept. During the reorganisation period, as a result, the administrator usually runs the business rather than the directors, and any additional liquidity requirements effectively have to be met by funds provided by existing creditors rather than by any
747:(created since 15 September 2003), by the company or by its directors. Other creditors must petition the court to appoint an administrator. The administrator must act in the interests of all the creditors and attempt to rescue the company as a
793:
to provide an out-of-court process to appoint an administrator to the holder of a floating charge or the company or its directors. This is considerably cheaper and simpler than the previous system, which involved an application to court.
827:
is an insolvency procedure where a company arranges a deal to sell its assets to a buyer before appointing administrators to facilitate the sale. It is a legal way of selling the business on to a trade buyer or third
898:
In this process, a debtor who has enough money left over after priority creditors and essential expenses may be able to arrange an individual voluntary arrangement. (Debtors with less serious problems may prefer a
1313:
668:
is when the directors of an insolvent company appoint an external administrator to investigate whether winding up the corporation can be prevented or delayed and to make recommendations to the directors and their
1291:
884:
immediately after Cobra Beer entered administration. This allowed the brand to continue and saved jobs, but also left suppliers out of pocket by an estimated £75 million.
1317:
1299:
1442:
347:
1225:
780:
was available as an alternative to administration, which has traditionally been a more rescue-oriented insolvency regime. This regime allowed the holder of a
403:
584:
is operated by an administrator (as interim chief executive with custodial responsibility for the company's assets and obligations) on behalf of its
992:
752:
708:
332:
203:
459:
70:
1170:
1024:
1070:
680:
When a creditor petitions the court seeking a court liquidation (a court-mandated winding up) of an insolvent company, the court appoints a "
373:
720:
532:
198:
1256:
755:" in the United States, although there are certain key differences, mainly stemming from the fact that English law does not include the
565:. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – in the
982:
730:
893:
95:
1447:
955:
802:
In the United
Kingdom, an administration order is a process designed to protect limited companies from their creditors while a
693:
562:
428:
398:
1274:
703:
697:
423:
418:
383:
75:
413:
987:
777:
1235:
1432:
1353:
806:
plan is carried out and presented to creditors and courts. This administration order process requires a licensed
665:
609:
479:
368:
525:
408:
393:
378:
363:
249:
819:
807:
619:
506:
496:
449:
337:
275:
126:
105:
1397:
1339:
1199:
1295:
1261:
872:
810:
to act as the administrator appointed by the court. The administration order does not concern joint debt.
681:
631:
239:
1030:. Information Sheet 41. Australian Securities & Investments Commission. December 2008. Archived from
962:, in 1999 there was established a law "About restoring the debtor's solvency or declaring him bankrupt".
1437:
1422:
881:
444:
342:
234:
218:
172:
151:
146:
1177:
1407:
900:
756:
454:
1031:
1427:
790:
786:
773:
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736:
518:
388:
1086:
966:
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626:
company's affairs. External administrators can be appointed either by the company's directors, a
600:
The legal terms for these processes vary from country to country, and the processes may overlap.
474:
265:
182:
1152:
1066:
1060:
726:
501:
484:
469:
316:
244:
136:
85:
673:
as to whether the company should enter into a deed of company arrangement, be wound up (i.e.
651:
635:
627:
311:
280:
177:
141:
650:. A receivership is when an external administrator known as a "receiver" is appointed by a
1230:
781:
744:
296:
80:
919:, but companies require permission from the High Court to enter and leave examinership.
850:
Please help update this article to reflect recent events or newly available information.
17:
1382:
743:. An "administrator" can be appointed without petitioning the court by the holder of a
566:
935:, as amended under the Companies (Voluntary Administration) Regulations Bill in 2007.
1416:
1112:
959:
765:
748:
213:
1378:
997:
916:
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110:
90:
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643:
570:
270:
100:
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674:
558:
554:
490:
65:
35:
965:
The official who administers "sanation" is known as an "arbitral director" (
662:, or by the court to protect the company's assets or carry out other tasks.
623:
585:
208:
670:
306:
167:
131:
569:
colloquially called being "under administration" – is an alternative to
912:
593:
1111:
Australian
Securities & Investments Commission (5 October 2016) .
888:
Individual administration order in
England, Wales and Northern Ireland
464:
622:, is an independent person that is formally appointed to control an
655:
546:
876:
possible. An example of a pre-pack is the sale of the assets of
639:
301:
573:
or may be a precursor to it. Administration is commenced by an
830:
1113:"Corporations Act 2001: Volume 1, No. 50; Compilation No. 73"
42:
596:
it into elements that can be sold and close the remainder.
735:
In UK law, the administration regime is governed by the
618:
In
Australia, an external administrator, also called an
1356:. New Zealand Legislation/Parliamentary Counsel Office.
1354:"Companies (Voluntary Administration) Regulations 2007"
1059:
Roman
Tomasic; Stephen Bottomley; Rob McQueen (2002).
1054:
1052:
1408:
1316:. Companies Office/Business.govt.nz. Archived from
1257:Pre-pack administrations to be investigated by OFT
592:the business, sell the business to new owners, or
848:. The reason given is: outcome of Nov 09 study?.
1403:Insolvency Practitioners Association UK website
1115:. C2016C00922. Federal Registrar of Legislation
1342:. New Zealand Insolvency and Trustee Service.
931:, voluntary administration is covered by the
526:
8:
1379:Code of Ukraine on the process of bankruptcy
1000:a similar process in the Republic of Ireland
533:
519:
31:
1275:Pre-packs overtake normal administrations
993:Chapter 11, Title 11, United States Code
772:administration regime introduced by the
1009:
436:
355:
324:
288:
257:
226:
190:
159:
118:
52:
34:
27:Rescue mechanism for insolvent entities
1206:. SFP Group 2014 - All Rights Reserved
1065:. Federation Press. pp. 740–742.
1019:
1017:
1015:
1013:
776:replaces the previous situation where
1153:"Bankruptcy and Insolvency at Glance"
709:Companies' Creditors Arrangements Act
7:
1443:Insolvency law of the United Kingdom
1226:"Insolvency: so what is a pre-pack?"
943:In Ukraine, a system of "sanation" (
721:Administration in United Kingdom law
1171:"Bankruptcy Law in Canada and B.C."
1135:"The Bankruptcy and Insolvency Act"
915:operates a similar process called
25:
1025:"Insolvency: A Glossary of Terms"
983:Administration (British football)
731:Administration (British football)
1087:"Voluntary Administration Guide"
894:Individual voluntary arrangement
835:
1369:. leksika.com.ua (in Ukrainian)
1292:"Money management – In England"
973:) and is appointed by a court.
956:dissolution of the Soviet Union
694:Commercial insolvency in Canada
563:bankruptcy in the United States
1398:HMG Insolvency Service website
1234:. 11 June 2009. Archived from
630:, or by a court, and include:
1:
1062:Corporations Law in Australia
704:Bankruptcy and Insolvency Act
698:Consumer bankruptcy in Canada
1340:"Company insolvency options"
638:, voluntary administrators,
580:A company in administrative
988:Administrative receivership
958:and reforming the existing
778:administrative receivership
1464:
1314:"Voluntary administration"
891:
817:
724:
718:
691:
607:
561:jurisdictions, similar to
970:
948:
844:This section needs to be
610:Australian insolvency law
553:is a procedure under the
480:History of bankruptcy law
1139:www.bankruptcy-canada.ca
666:Voluntary administration
654:to sell off a company's
588:. The administrator may
250:Voidable floating charge
18:Went into administration
1385:(Ukrainian parliament).
820:Pre-packaged insolvency
814:Pre-pack administration
808:insolvency practitioner
632:provisional liquidators
620:insolvency practitioner
497:Pre-packaged insolvency
450:Bankruptcy alternatives
338:Cross-border insolvency
276:Trading while insolvent
127:Insolvency practitioner
106:Provisional liquidation
1448:Corporate liquidations
1296:Citizens Advice Bureau
873:Office of Fair Trading
871:In November 2009, the
682:provisional liquidator
658:in order to repay the
240:Undervalue transaction
47:
608:Further information:
445:Anti-deprivation rule
343:Insolvency Regulation
235:Fraudulent conveyance
219:Scheme of arrangement
173:Preferential creditor
152:Trustee in bankruptcy
147:Referee in Bankruptcy
46:
1262:Business Sale Report
1174:Slocombe-trustee.com
971:aрбітрaжний керуючий
901:debt management plan
798:Administration order
757:debtor in possession
739:, as amended by the
575:administration order
557:laws of a number of
1302:on 23 January 2010.
1091:www.litigant.com.au
907:Republic of Ireland
791:Insolvency Act 1986
787:Enterprise Act 2002
774:Enterprise Act 2002
741:Enterprise Act 2002
737:Insolvency Act 1986
640:deed administrators
199:Administration (UK)
1265:, 24 November 2009
933:Companies Act 1993
804:debt restructuring
475:Financial distress
348:UNCITRAL Model Law
266:Fraudulent trading
183:Unsecured creditor
48:
1433:Corporate finance
1180:on 12 August 2014
1072:978-1-86287-314-8
865:
864:
727:UK insolvency law
543:
542:
502:Sovereign default
485:List of bankrupts
455:Creditors' rights
317:Security interest
245:Unfair preference
227:Avoidance regimes
137:Regulatory agency
16:(Redirected from
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1386:
1376:
1370:
1364:
1358:
1357:
1350:
1344:
1343:
1336:
1330:
1329:
1327:
1325:
1320:on 21 April 2017
1310:
1304:
1303:
1298:. Archived from
1288:
1282:
1272:
1266:
1254:
1248:
1247:
1245:
1243:
1222:
1216:
1215:
1213:
1211:
1200:"Administration"
1196:
1190:
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1185:
1176:. Archived from
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1037:on 11 March 2015
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1021:
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950:
911:The Republic of
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851:
839:
838:
831:
652:secured creditor
628:secured creditor
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312:Second lien loan
281:Wrongful trading
178:Secured creditor
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1279:Accountancy Age
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1238:on 16 June 2010
1231:Accountancy Age
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782:floating charge
745:floating charge
733:
723:
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700:
692:Main articles:
690:
616:
606:
539:
333:Chapter 15 (US)
297:Floating charge
204:Chapter 11 (US)
81:Conservatorship
28:
23:
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15:
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11:
5:
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1392:External links
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1383:Verkhovna Rada
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1281:, 18 June 2009
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954:Following the
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766:DIP financing
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749:going concern
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1438:Court orders
1423:Business law
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1362:
1348:
1334:
1322:. Retrieved
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998:Examinership
964:
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917:examinership
910:
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824:
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801:
789:amended the
770:
762:super-senior
734:
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660:secured debt
617:
614:Receivership
598:
590:recapitalize
582:receivership
579:
574:
550:
544:
489:
414:South Africa
111:Receivership
91:Examinership
60:
29:
1119:30 November
1041:30 November
929:New Zealand
923:New Zealand
644:controllers
636:liquidators
571:liquidation
419:Switzerland
271:Misfeasance
101:Liquidation
86:Dissolution
1428:Insolvency
1417:Categories
1242:10 January
1005:References
878:Cobra Beer
856:March 2019
753:Chapter 11
725:See also:
711:("CCAA").
675:liquidated
559:common law
555:insolvency
491:Pari passu
356:By country
142:Liquidator
66:Bankruptcy
36:Insolvency
967:Ukrainian
945:Ukrainian
671:creditors
648:receivers
624:insolvent
604:Australia
586:creditors
549:concept,
394:Hong Kong
369:Australia
209:Cram down
160:Claimants
119:Officials
53:Processes
1367:Sanation
1210:23 March
1184:5 August
1157:Ic.gc.ca
977:See also
825:Pre pack
364:Anguilla
307:Mortgage
289:Security
258:Offences
168:Creditor
132:Tribunal
1159:. 2012.
949:санація
939:Ukraine
913:Ireland
846:updated
594:demerge
470:Default
404:Ireland
1096:4 July
1069:
828:party.
688:Canada
656:assets
646:, and
465:Debtor
409:Russia
384:Cayman
379:Canada
1324:3 May
1035:(PDF)
1028:(PDF)
882:Coors
547:legal
545:As a
437:Other
399:India
389:China
1326:2017
1244:2017
1212:2014
1186:2014
1121:2016
1098:2020
1067:ISBN
1043:2016
729:and
702:The
696:and
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