New Rules on Pre-Adminstration Costs
Insolvency Practitioners have been eagerly awaiting the implementation on 6 April 2010 of the Insolvency (Amendment) Rules 2010 ("New Rules"). In addition to the many modernising changes made by the New Rules is the long awaited inclusion of what was believed to be a statutory entitlement to recover pre-appointment costs such as in negotiating a pre-pack. as an expense of the administration (New Rule 2.67(1)(h)).
New Rule 2.33(2A) provides that "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 into administration but with a view to its doing so".