74 Insolvency

The first threshold requirement for entry into administration is that the company is, or is likely to become, unable to pay its debts1, except where the appointment is by notice given by, or on the application to the court of, the holder of a qualifying floating charge (where the equivalent requirement is that default has occurred under the terms of the charge)2. It follows that insolvency on a going-concern basis, that being, inability to pay debts as they fall due, is sufficient to invoke the administration procedure, even where there is no demonstrable

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