How can an administrator apply to extend the period of automatic termination of administration?
How can an administrator apply to extend the period of automatic termination of administration?

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • How can an administrator apply to extend the period of automatic termination of administration?
  • Coronavirus (COVID-19)
  • Brexit impact
  • How and when can an administrator apply to extend their term?
  • Procedure for extending an administrator’s term by court order
  • How to extend an administrator’s term by creditors’ consent
  • When will the court grant an extension?

The Enterprise Act 2002 enabled administrators to be appointed using an out-of-court procedure for the first time. While this allowed for more freedom within the administration process, parliament recognised that it would not be wise to allow administrations to continue indefinitely with no recourse to the court. As a result, under the Insolvency Act 1986 (IA 1986), the period of an administration, or 'administration term' or 'administrator's term of office', will, unless extended, automatically come to an end after 12 months. See Administration—overview.

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. References to exit day in many Brexit SIs are to be read as reference to IP completion day (Implementation Period completion day, defined in clause 39 as 31 December 2020 at 11.00 pm) (unless that provision is expressly disapplied by the SI in question). For further details, see News Analysis: Brexit—impact of the Withdrawal Agreement and European Union (Withdrawal Agreement) Act 2020 for R&I lawyers and Brexit Bulletin—key updates, research tips and resources. For further details of the impact on the Recast Regulation on Insolvency, see Practice Note: Brexit—impact on Recast Regulation on Insolvency. In