Frontsouth (Witham) Ltd & Anor, Re

Frontsouth (Witham) Ltd & Anor, Re

Rule 7.55 cannot be used to waive the defect in the extension of the administrators' term for Bridge Hospital (Witham) Ltd, as the failure to obtain written consent from a secured creditor was a fundamental flaw, not a formal defect. The court's jurisdiction to extend administration expired, but a retrospective administration order may be made for up to 364 days under Schedule B1, provided the application is made by a party with proper standing, such as a creditor.

Parties
Applicant: Bruce Alexander Mackay; Applicant: Matthew Robert Haw; Company: Frontsouth (Witham) Ltd; Company: Bridge Hospital (Witham) Ltd; Secured Creditor: Bank of Ireland; Secured Creditor: Westbury Homes (Holdings) Limited
Jurisdiction
England and Wales
Judgment Date
30 June 2011
Procedural Posture
Administration Application / Judgment
Outcome
Application to waive defect under rule 7.55 refused; retrospective administration order granted on creditor's application.
Legal Topics
Administrators' Appointment, Extension of Administration, Waiver of Defects, Retrospective Administration Orders
Insolvency Company Law Administrators' Appointment Extension of Administration Waiver of Defects Retrospective Administration Orders

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Parties

Bruce Alexander Mackay

Applicant

Matthew Robert Haw

Applicant

Frontsouth (Witham) Ltd

Company

Bridge Hospital (Witham) Ltd

Company

Bank of Ireland

Secured Creditor

Westbury Homes (Holdings) Limited

Secured Creditor

Procedural Posture

Administration Application / Judgment

Legal Issues

  1. 1 Whether the defect in the extension of administrators' term for Bridge Hospital (Witham) Ltd can be waived under rule 7.55 of the Insolvency Rules 1986
  2. 2 Whether the court has jurisdiction to make a retrospective administration order
  3. 3 Who has standing to make the application for administration

Ratio Decidendi

Rule 7.55 cannot be used to waive the defect in the extension of the administrators' term for Bridge Hospital (Witham) Ltd, as the failure to obtain written consent from a secured creditor was a fundamental flaw, not a formal defect. The court's jurisdiction to extend administration expired, but a retrospective administration order may be made for up to 364 days under Schedule B1, provided the application is made by a party with proper standing, such as a creditor.

Court Disposition

Application to waive defect under rule 7.55 refused; retrospective administration order granted on creditor's application.

Orders

  • Administration of Frontsouth (Witham) Ltd extended for 12 months.
  • Administration order for Bridge Hospital (Witham) Ltd made, back-dated to 25 June 2010 on Bank of Ireland's application.