Insolvency practitioners and environmental permits
Insolvency practitioners and environmental permits

The following Environment guidance note provides comprehensive and up to date legal information covering:

  • Insolvency practitioners and environmental permits
  • Enforcement notices
  • Surrender or transfer of permits
  • Disclaimer of permits by a liquidator

Under Environmental Permitting (England and Wales) Regulations 2016, the operator of any regulated facility must obtain and comply with the conditions of its environmental permit. The appointment of an administrator or liquidator has no effect on the operator and the operator must still comply with its permit and any conditions attached to it or risk committing an offence. The insolvency practitioner (IP) is bound by the conditions of the permit to the same extent as the directors and company officers.

The precise role and relationship of the IP with the company depends on the insolvency procedure being followed. A lender or other holder of a fixed charge over property may, once that charge has become exercisable, appoint a receiver under Law of Property Act 1925 (LPA 1925). The LPA receiver's principal function is to demand and recover for the lender income from the mortgagor's (ie the borrower's) business. The LPA receiver is deemed to be the agent of the mortgagor and the mortgagor is solely responsible for the LPA receiver's acts or defaults unless the mortgage deed provides otherwise. Consequently, there is no change in the identity of the permit holder, and no possibility of disclaimer.

Enforcement notices

On appointment, the IP