Moss Groundworks Ltd, Re The Insolvency Act 1986

Moss Groundworks Ltd, Re The Insolvency Act 1986

The application for administration is adjourned because the information provided regarding the marketing process and compliance with SIP 16 is inadequate; the court cannot be satisfied that the proposed pre-pack sale is not abusive or that it achieves the best outcome for creditors.

Parties
Applicant: Moss Groundworks Limited; Interested Party: Bibby Financial Services; Interested Party: Travis Perkins Plc
Jurisdiction
England and Wales
Judgment Date
06 September 2019
Procedural Posture
Insolvency Application / Application for Administration Order, Hearing Adjourned
Outcome
Application for administration order adjourned; no order made.
Legal Topics
Administration, Pre Pack Sale, Creditor Protection, Marketing Requirements, Statement of Insolvency Practice 16 (sip 16)
Insolvency Company Law Administration Pre Pack Sale Creditor Protection Marketing Requirements Statement of Insolvency Practice 16 (sip 16)

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Parties

Moss Groundworks Limited

Applicant

Bibby Financial Services

Interested Party

Travis Perkins Plc

Interested Party

Procedural Posture

Insolvency Application / Application for Administration Order, Hearing Adjourned

Legal Issues

  1. 1 Whether the company is insolvent and eligible for administration
  2. 2 Whether the proposed administration is likely to achieve a better result for creditors than liquidation
  3. 3 Whether the marketing process for the pre-pack sale complies with SIP 16 requirements

Ratio Decidendi

The application for administration is adjourned because the information provided regarding the marketing process and compliance with SIP 16 is inadequate; the court cannot be satisfied that the proposed pre-pack sale is not abusive or that it achieves the best outcome for creditors.

Court Disposition

Application for administration order adjourned; no order made.

Orders

  • Application adjourned over the weekend to allow reconsideration of evidence and marketing process.
  • Company and proposed administrators to produce further evidence to satisfy court of compliance with SIP 16 and appropriateness of administration order.