Module 8 - Administration Exits Flashcards
Creditors’ Role in the Administration
Submit Proofs;
Receive Dividends;
Approve Stuff (Fees / Proposals);
Form a Committee;
Receive Reports;
Challenge Stuff
What is a Paragraph 52 Statement?
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
How long does deemed Approval of proposals take after Para 52 Statement issued?
8 Business Days
What percentage of creditors can apply to court to challenge fees and what is the deadline?
10% in value, within 8 weeks of receipt of the report
What percentage of creditors can request additional info with regards to fees and what is the timeframe?
5% in value within 21 days
What are the Basics of a Progress Report?
Appointment details, IP, Company Info, Any Extensions, Remuneration…
What Basis can an IP draw their Fees?
Percentage;
Timecosts;
Fixed Fee;
combination
What should Creditors Consider when approving Fees?
Complexity of Case;
Exceptional Circumstances of Responsibilities;
effectiveness with which IP carrying out Duties;
Value and Nature of Property being dealt with
What needs to be included with Timecost basis?
Fee estimate which acts as a cap on fees
What info do creditors need for fee approval?
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
5 Categories of Classification of Work
Administration & Planning;
Investigations;
Realisation of Assets;
Trading;
Creditors
If an IP made a Para 52 (1b) Statement - who approves fees?
ALL Secured Creditors;
A Decision of the Preferential Creditors
If no Paragraph 52 (1b) statement was made, who approves the fees?
Unsecured creditors
4 Main Decision Procedures (and the 2 extra ones)
Correspondence
Virtual Meeting;
Electronic;
Any other way;
Physical Meeting (10 / 10 / 10)
Deemed Consent Procedure (never ever used for fee approval)
2 Ways to get an Admin Extension
Creditors - for a max of 12 months, only once
Court - no limit on additional length.
If Court say no, you cannot go to Creditors
How does Paragraph 52 1b play into extension of Administration?
Same as Fee Approval:
If Para 52 (1b) - All Secured and Pref Creditors
No Para 52 (1b) - unsecured
3 Main Exit Options
Dissolve Company;
Exit to Liquidation;
CVA - trying to save Business
What Notice do you need to submit to move from Admin to CVL?
Paragraph 83 Notice
Why Exit via CVL?
Cheap and Simple;
Legal;
Pursue Misfeasance (Admin cannot);
Disclaim Onerous Property (Admin cannot);
Investigations can go on (No end date with Li
How long does it take for Registrar to dissolve Company between receiving Form and Dissolving Company?
3 Months
Which Paragraph is required to move to Dissolution?
Para 84
Why exit via Dissolution?
Nothing Left to do;
Cost effective
How much Creditor approval do you need to move to CVA?
75%
