Planning issues for insolvency practitioners

Insolvency practitioners (IPs) may be appointed over land (either directly, eg in the case of a fixed charge receivership or over a company which owns land, eg in administration) that is affected by planning law. Land that is burdened by planning issues may create the following issues for an IP:

1. •

   the costs of an insolvency process may be increased, for example, in the process of securing planning permissions, meeting planning obligations or paying fines for non-compliance, some of which may be payable as super-priority costs out of the estate, and

2. •

   the value of the land affected by planning obligations or subject to potential enforcement action or the subject of potential compulsory purchase may be reduced

Planning issues may arise in relation to land over which an IP is appointed in the following situations:

1. •

   the land may have been previously developed and is therefore likely to be burdened by planning