The following Restructuring & Insolvency practice note Produced in partnership with William Wilson of South Square provides comprehensive and up to date legal information covering:
This Practice Note will give a basic overview of what amounts to an administration expense and some of the case law on this topic.
Expenses of an administration are payable from the assets of the company in administration after fixed charge creditors but in priority to the claims of preferential creditors, floating charge holders and unsecured creditors. This order of priority (or ‘waterfall’) is altered by the Corporate Insolvency and Governance Act (CIGA 2020) where an administration is preceded by a moratorium under Part A1 of the Insolvency Act 1986 (IA 1986).
There are a number of expenses classified under the IA 1986 and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. The Insolvency Rules are specific on the order of priority of payment to be applied to different classes of expenses. Therefore, not only is it important for a creditor to establish that their claim is an expense of the administration if they want to put themselves ahead of other creditors, but also to establish under what category that expense falls, to get as far up the priority order as possible.
By way of example, solicitors' fees have been held to be either 'expenses properly incurred by the administrator in performing his duties', or 'any necessary disbursement' (see order below). The former comes at the top of the priority order, the latter
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This Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan to value ratioIt explains:
This Practice Note provides guidance on claims for ‘use and occupation’ or mesne profits, and how and when double rent or double value can be claimed.Claims for use and occupationA claim for use and occupation is possible where there is occupation of land without an express agreement fixing the
A certificate of title (also known as a certificate on title) is a particular species of report on title.When solicitors are instructed to investigate title to land (for instance, when land is being acquired or offered up as security), they will write a report on title for their client, which sets
This Practice Note provides a high-level introduction to diversity and inclusion (D&I) and key reasons why it is important to law firms. Specific aspects of D&I are covered in more detail in Practice Notes:•The growing focus on diversity and inclusion (D&I) in law firms•Unconscious bias—law
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