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Defects in notification procedure not fatal to extension of administration by consent (Re Caversham Finance Ltd and Re Caversham Trading Ltd)

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Published on: 27 April 2022

Published by a LexisNexis Restructuring & Insolvency expert

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What are the practical implications of this case?
What was the background?
What did the court decide?
Case details

Article summary

Restructuring & Insolvency analysis: In Re Caversham Finance Ltd and Re Caversham Trading Ltd, the court was required to decide whether extensions of the terms of office of administrators by consent was a nullity because of defects in the procedure. The court held that notices sent to the companies’ preferential creditors were defective and non-compliant with the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. However, the court accepted that the defects were procedural in nature, and therefore fell within IR 2016, SI 2016/1024, r 12.64. Absent any evidenced prejudice to the creditors, the court declared that the administrations were validly extended by consent. Written by Jessica Powers, barrister at New Square Chambers.

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