Q&As

What does "substantially the whole" mean in the context of a QFC appointment?

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Published on LexisPSL on 25/11/2013

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • What does "substantially the whole" mean in the context of a QFC appointment?
  • Where is it relevant?
  • What does "substantially the whole" mean?
  • Help from other jurisdictions
  • Getting it wrong

Where is it relevant?

Paragraph 14(1) of Schedule B1 to the Insolvency Act 1986 (IA 1986)allows the holder of a qualifying floating charge in respect of the company's property to appoint an administrator of the company using the out-of-court route.

IA 1986, para 14(3) of Sch B1 provides that a person is the holder of a qualifying floating charge if he holds one or more debentures of the company secured by:

  1. one or more qualifying floating charges that relate to the "whole or substantially the whole of the company's property" (IA 1986, para 14(3)(a) and para 14(3)(b) of Sch B1) or

  2. charges and other forms of security that together relate to the "whole or substantially the whole of the company's property" and at least one is a qualifying floating charge (IA 1986, para14(3)(c) of Sch B1)

Please refer to IA 1986, para 14(2) of Sch B1 for the criteria of what is a qualifying floating charge.

What does "substan

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