Lifting the administration moratorium—appointment of fixed charge receiver
Produced in partnership with Carolyn Jones

The following Restructuring & Insolvency practice note produced in partnership with Carolyn Jones provides comprehensive and up to date legal information covering:

  • Lifting the administration moratorium—appointment of fixed charge receiver
  • Coronavirus (COVID-19)
  • Introduction to receivership
  • Administration—the moratorium
  • Appointment of receivers—pre-administration
  • Generally
  • Administrator’s power to remove receivers
  • Appointment of receivers—post-administration
  • Approach of the court
  • Factors you should consider when seeking to appoint a fixed charge receiver

Lifting the administration moratorium—appointment of fixed charge receiver

This Practice Note considers the interaction between the statutory moratorium under Schedule B1 to the Insolvency Act 1986 (IA 1986), which prevents most creditor or third-party actions against an insolvent company in administration, and the right of a secured creditor to enforce its security over the company’s secured asset by appointing a fixed charge receiver. For an explanation of the moratorium which arises in administration, please see Practice Note: The moratorium in administration.

This note does not consider additional enforcement options that may be available to the secured creditor.

This note also does not address the impact on a lender’s ability to appoint a receiver which may arise once a ‘stand-alone’ moratorium arising under IA 1986, Pt A1 (see Practice Note: Corporate Insolvency and Governance Act 2020—moratorium). Permission of the court will also be required in that instance before any enforcement steps are taken (with limited exceptions) (IA 1986, s A21(1)(c)) and that no application for permission can be made for the purposes of enforcing a pre-moratorium debt for which the debtor company has a payment holiday during the moratorium (IA 1986, s A21(2)). See also IA 1986, s A23 ‘Enforcement of security granted during moratorium’.

Coronavirus (COVID-19)

This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and processes as a

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