Reasoned administration order judgment given where there were ‘strong grounds’ to demonstrate invalidity of floating charge (Re Wilton UK (Group) Ltd)

Article summary

Restructuring & Insolvency analysis: The court made a retrospective administration order. It did so on a ‘worst case’ basis, without reaching a firm conclusion on whether the purported initial appointment of the administrators (made out of court under paragraph 14 of Schedule B1 to the Insolvency Act 1986 (IA 1986)) had been premised on an invalid floating charge, although did so while noting that there were ‘strong grounds’ for finding that the charge was invalid. The court considered a large quantity of evidence from purported creditors who supported the winding-up petition. That evidence ultimately had little probative value to the issues in dispute, because (i) much of it appears to have been unreliable, or at best to have been evidence of disputed debts; and (ii) the court was unable to conclude there was any majority creditor view either way. In circumstances where the company was clearly insolvent and the...