Q&As

If a liquidator's fees have been authorised by creditors (no committee) on a time cost basis in accordance with the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 18.16(2)(b) and their fee estimate has been exceeded but approval to take remuneration above estimate from the creditors as per IR 2016, SI 2016/1024, r 18.30(2)(b) is refused, how can they get approval for their fees? IR 2016, SI 2016/1024, r 18.30 does not provide for an application to court in this scenario. IR 2016, SI 2016/1024, rr 18.24 and 18.28 do permit an application to court in the absence of creditor agreement, but this is only where 'the rate or amount of remuneration fixed is insufficient or the basis fixed is not appropriate'.

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Produced in partnership with Caroline Clark
Published on LexisPSL on 02/06/2020

The following Restructuring & Insolvency Q&A produced in partnership with Caroline Clark provides comprehensive and up to date legal information covering:

  • If a liquidator's fees have been authorised by creditors (no committee) on a time cost basis in accordance with the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 18.16(2)(b) and their fee estimate has been exceeded but approval to take remuneration above estimate from the creditors as per IR 2016, SI 2016/1024, r 18.30(2)(b) is refused, how can they get approval for their fees? IR 2016, SI 2016/1024, r 18.30 does not provide for an application to court in this scenario. IR 2016, SI 2016/1024, rr 18.24 and 18.28 do permit an application to court in the absence of creditor agreement, but this is only where 'the rate or amount of remuneration fixed is insufficient or the basis fixed is not appropriate'.

If a liquidator's fees have been authorised by creditors (no committee) on a time cost basis in accordance with the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 18.16(2)(b) and their fee estimate has been exceeded but approval to take remuneration above estimate from the creditors as per IR 2016, SI 2016/1024, r 18.30(2)(b) is refused, how can they get approval for their fees? IR 2016, SI 2016/1024, r 18.30 does not provide for an application to court in this scenario. IR 2016, SI 2016/1024, rr 18.24 and 18.28 do permit an application to court in the absence of creditor agreement, but this is only where 'the rate or amount of remuneration fixed is insufficient or the basis fixed is not appropriate'.

In the situation described in this Q&A, it has been assumed that the liquidator has drawn properly approved remuneration calculated on a time cost basis up to the limit allowed by the fee estimate and has asked creditors to approve remuneration in excess of the original fee estimate (the additional remuneration). This approval has not been forthcoming, although it is not certain whether this is because creditors have actively

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