Moss Groundworks Ltd, Re Insolvency Act 1986 [2019] EWHC 3079 (Ch) (10 September 2019)

Moss Groundworks Ltd, Re Insolvency Act 1986 [2019] EWHC 3079 (Ch) (10 September 2019)

The court was satisfied that the statutory criteria for administration were met and, in light of the further material provided, the risk of abuse of the pre-pack administration procedure was sufficiently reduced. The role of the administrator and creditor rights were deemed adequate safeguards, justifying the making of the administration order, subject to costs qualification.

Citation
[2019] EWHC 3079 (Ch)
Parties
Subject Company: Moss Groundworks Limited; Applicant: Applicant (not named)
Jurisdiction
England and Wales
Judgment Date
10 September 2019
Procedural Posture
Administration Application (insolvency) / Judgment on Adjourned Application for Administration Order
Outcome
Administration order granted, with costs qualification.
Legal Topics
Administration Order, Pre Pack Sale, Abuse of Process, SIP 16 Compliance, Director's Loan Account
Insolvency Company Law Administration Order Pre Pack Sale Abuse of Process SIP 16 Compliance Director's Loan Account

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Parties

Moss Groundworks Limited

Subject Company

Applicant (not named)

Applicant

Procedural Posture

Administration Application (insolvency) / Judgment on Adjourned Application for Administration Order

Legal Issues

  1. 1 Whether the proposed administration and pre-pack sale constitute an abuse of the administration procedure
  2. 2 Whether the statutory criteria for administration are met
  3. 3 Whether the court should exercise its discretion to make an administration order

Ratio Decidendi

The court was satisfied that the statutory criteria for administration were met and, in light of the further material provided, the risk of abuse of the pre-pack administration procedure was sufficiently reduced. The role of the administrator and creditor rights were deemed adequate safeguards, justifying the making of the administration order, subject to costs qualification.

Court Disposition

Administration order granted, with costs qualification.

Orders

  • Administration order made in standard terms.
  • Applicant's costs of Friday's hearing before Snowden J not to be paid as an expense of the administration.