Module 8 - Administration Exits

Question 1

Creditors’ Role in the Administration

Answer 1

Submit Proofs;
Receive Dividends;
Approve Stuff (Fees / Proposals);
Form a Committee;
Receive Reports;
Challenge Stuff

Question 2

What is a Paragraph 52 Statement?

Answer 2

One of 3 things: making a statement to say unsecured creditors are not going to get paid other than prescribed part; creditors will get paid in full; I am only meeting third statutory purpose

Question 3

How long does deemed Approval of proposals take after Para 52 Statement issued?

Answer 3

8 Business Days

Question 4

What percentage of creditors can apply to court to challenge fees and what is the deadline?

Answer 4

10% in value, within 8 weeks of receipt of the report

Question 5

What percentage of creditors can request additional info with regards to fees and what is the timeframe?

Answer 5

5% in value within 21 days

Question 6

What are the Basics of a Progress Report?

Answer 6

Appointment details, IP, Company Info, Any Extensions, Remuneration…

Question 7

What Basis can an IP draw their Fees?

Answer 7

Percentage;
Timecosts;
Fixed Fee;
combination

Question 8

What should Creditors Consider when approving Fees?

Answer 8

Complexity of Case;
Exceptional Circumstances of Responsibilities;
effectiveness with which IP carrying out Duties;
Value and Nature of Property being dealt with

Question 9

What needs to be included with Timecost basis?

Answer 9

Fee estimate which acts as a cap on fees

Question 10

What info do creditors need for fee approval?

Answer 10

Basis of remuneration;
Estimate;
Work to be undertaken;
Details of expenses likely to be incurred;
R3 Creditors Guide to Fees;
Detail of Charge Out Rates;
Minimum Time Charging Units;
Split of Staff Grades;
work to be undertaken;
Time Charging and Disbursement Policy;
Fees incurred to date

Question 11

5 Categories of Classification of Work

Answer 11

Administration & Planning;
Investigations;
Realisation of Assets;
Trading;
Creditors

Question 12

If an IP made a Para 52 (1b) Statement - who approves fees?

Answer 12

ALL Secured Creditors;
A Decision of the Preferential Creditors

Question 13

If no Paragraph 52 (1b) statement was made, who approves the fees?

Answer 13

Unsecured creditors

Question 14

4 Main Decision Procedures (and the 2 extra ones)

Answer 14

Correspondence
Virtual Meeting;
Electronic;
Any other way;

Physical Meeting (10 / 10 / 10)
Deemed Consent Procedure (never ever used for fee approval)

Question 15

2 Ways to get an Admin Extension

Answer 15

Creditors - for a max of 12 months, only once
Court - no limit on additional length.

If Court say no, you cannot go to Creditors

Question 16

How does Paragraph 52 1b play into extension of Administration?

Answer 16

Same as Fee Approval:
If Para 52 (1b) - All Secured and Pref Creditors
No Para 52 (1b) - unsecured

Question 17

3 Main Exit Options

Answer 17

Dissolve Company;
Exit to Liquidation;
CVA - trying to save Business

Question 18

What Notice do you need to submit to move from Admin to CVL?

Answer 18

Paragraph 83 Notice

Question 19

Why Exit via CVL?

Answer 19

Cheap and Simple;
Legal;
Pursue Misfeasance (Admin cannot);
Disclaim Onerous Property (Admin cannot);
Investigations can go on (No end date with Li

Question 20

How long does it take for Registrar to dissolve Company between receiving Form and Dissolving Company?

Answer 20

3 Months

Question 21

Which Paragraph is required to move to Dissolution?

Answer 21

Para 84

Question 22

Why exit via Dissolution?

Answer 22

Nothing Left to do;
Cost effective

Question 23

How much Creditor approval do you need to move to CVA?

Answer 23

75%