Procedure relating to the appointment of an administrative receiver—the position under the Insolvency (England and Wales) Rules 2016
Produced in partnership with John Hughes of Shakespeare Martineau LLP
Procedure relating to the appointment of an administrative receiver—the position under the Insolvency (England and Wales) Rules 2016

The following Restructuring & Insolvency guidance note Produced in partnership with John Hughes of Shakespeare Martineau LLP provides comprehensive and up to date legal information covering:

  • Procedure relating to the appointment of an administrative receiver—the position under the Insolvency (England and Wales) Rules 2016
  • Steps prior to appointment
  • Default and demand
  • The appointment
  • Notice requirements
  • Additional points of note

Steps prior to appointment

The power to appoint an administrative receiver lies with the holder of a floating charge subject to the following:

  1. the charge pursuant to which the administrative receiver is appointed must be a floating charge over the assets or a substantial part of the assets of the company mortgagor

  2. the floating charge needs to be dated before 15 September 2003. The Enterprise Act 2002 abolished the ability to appoint administrative receivers except in the following cases:

    1. pursuant to agreements forming part of a capital market arrangement involving a debt of at least £50 million

    2. appointment of an administrative receiver to a project company of a public-private partnership project with step-in rights

    3. appointment of an administrative receiver to a project company of a utilities project with step-in rights

    4. appointment of an administrative receiver to a project company involved in a financed project with step in-rights

    5. where the company is a private registered provider of social housing or registered as social landlords under the Housing Act 1996

    6. additional exceptions exist in relation to financial market under Insolvency Act 1986 (IA 1986), s 72F, protected railway companies under IA 1986, s 72GA and urban regeneration projects under IA 1986, s 72F

Default and demand

A default must have occurred under the terms of the floating charge.