| Commentary

71.3 Administrative receivership

| Commentary

71.3 Administrative receivership

For reasons explained above1, there will for a considerable period be administrative receivers2 appointed to companies which might otherwise go into administration on the application of the holder of a qualifying floating charge, and the law about the relationship between the two procedures therefore continues, in substantially the same terms as set out in the original legislation.

The general effect of this legislation is that a secured creditor, the holder of a qualifying floating charge, is entitled to appoint his nominee (whether as administrative receiver or administrator) in preference to any administrator proposed by the company or its

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial