T & D Industries Plc, Re [1999] EWHC 302 (Ch) (08 November 1999)

T & D Industries Plc, Re [1999] EWHC 302 (Ch) (08 November 1999)

An administrator appointed under s.8(3) of the Insolvency Act 1986 may dispose of company assets prior to the approval of proposals by creditors at a s.24 meeting without a specific direction of the court, unless the administration order or court directions provide otherwise. The statutory language, policy of the administration regime, and relevant authorities support this interpretation.

Citation
[1999] EWHC 302 (Ch)
Parties
Administrators (applicants): Neville Kahn and Roger Marsh (PricewaterhouseCoopers); Companies (subject of Administration): T & D Industries plc and T & D Automotive Ltd; Creditor (petitioner): Burdale Financial Ltd
Jurisdiction
England and Wales
Judgment Date
08 November 1999
Procedural Posture
Company Administration Application / Application for Directions Prior to Creditors' Meeting
Outcome
Application granted
Legal Topics
Administrator's Powers Prior to Creditors' Meeting, Court Directions Under Insolvency Act 1986, Disposal of Company Assets in Administration
Insolvency Law Company Law Administrator's Powers Prior to Creditors' Meeting Court Directions Under Insolvency Act 1986 Disposal of Company Assets in Administration

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Parties

Neville Kahn and Roger Marsh (PricewaterhouseCoopers)

Administrators (applicants)

T & D Industries plc and T & D Automotive Ltd

Companies (subject of Administration)

Burdale Financial Ltd

Creditor (petitioner)

Procedural Posture

Company Administration Application / Application for Directions Prior to Creditors' Meeting

Legal Issues

  1. 1 Whether an administrator can dispose of company assets prior to approval of proposals by creditors without a specific court direction

Ratio Decidendi

An administrator appointed under s.8(3) of the Insolvency Act 1986 may dispose of company assets prior to the approval of proposals by creditors at a s.24 meeting without a specific direction of the court, unless the administration order or court directions provide otherwise. The statutory language, policy of the administration regime, and relevant authorities support this interpretation.

Court Disposition

Application granted

Orders

  • Declaration that administrators may dispose of company assets prior to creditors' meeting without specific court direction unless otherwise ordered.
  • Order for costs of the application to be granted.