It Is All in the Timing: High Court Confirms Globespan Decision on When an Administration Appointment Truly Ends

    July 2013

    An administrators’ appointment automatically ends after one year, unless steps are taken to extend it. The Enterprise Act introduced a new streamlined process for moving quickly and easily from administration to creditors’ voluntary liquidation, just by filing a notice at Companies House under para 83(3) Sch B1 of the Insolvency Act (IA)1986. Problems have arisen where that notice has been filed very late in the day and not received before the administrators’ term of office automatically ends.

    In the recent High Court decision of Property Professionals + Limited [2013, EWHC 1903 (Ch)] HHJ Purle has confirmed the obiter statement made by the Court of Appeal earlier this year in the Globespan decision (Re Globespan Airways Limited [2013]) as to when the term of an administration ends, for the purposes of moving from administration to creditors’ voluntary liquidation, pursuant to paragraph 83 Sch B1 of the IA 1986.