Administrators’ muddle ‘resolved’ by dismissing their remuneration application (Frost v The Good Box Co Labs Ltd)

Article summary

Restructuring & Insolvency analysis: The court held that, through the twists and turns of (partial) creditor agreement, the application of the Insolvency Rules 2016, the fee estimate of a company’s former Administrators, the promise of those same Administrators not to draw remuneration beyond a set amount, the rule in Ex parte James, the intervention of a restructuring plan under Part 26A, the interpretation of the Plan documentation, and the refusal by the Plan Administrators to increase the Administrators’ remuneration, that the issue identified in the Administrators’ application was not one on which the court could adjudicate. Instead of making an application under rules 18.24/18.28, any claim by the Administrators should have been brought under CPR 7. However, the pragmatic guidance given by Lord Justice Zacaroli after dismissing the application appeared to be intended to ‘steer’ the Administrators and Plan Administrators towards a consensual result. Written by Samuel Parsons, barrister at Erskine Chambers.