Commentary

85.2 Application where company is in liquidation

BANKRUPTCY AND INSOLVENCY (CORPORATE INSOLVENCY) vol 3(3)
| Commentary

85.2 Application where company is in liquidation

| Commentary

85.2 Application where company is in liquidation

Where the holder of a qualifying floating charge is entitled to appoint an administrator under paragraph 14 to Schedule B1 of the Insolvency Act 1986, that is to say where there is an event of default under the terms of his security, but the company is already in liquidation, he may not make an out-of-court appointment under paragraph 14. He may, nevertheless, where the liquidation is compulsory (but not where it is voluntary), apply to the court for the appointment of an administrator and, in effect, to substitute an administration for the liquidation1.

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