Johnson Machine and Tool Co Ltd & Anor, Re

Johnson Machine and Tool Co Ltd & Anor, Re

It is not appropriate to treat pre-appointment costs as administration expenses in these pre-pack administration cases because the balance of advantage does not clearly favour creditors over management, and such costs do not arise from matters within the administration itself.

Parties
Subject Company: Johnson Machine and Tool Co. Limited; Subject Company: Empire Surfacing Limited; Applicant Advocate: Stephen Eyre; Applicant Advocate: Angus Burden
Jurisdiction
England and Wales
Judgment Date
18 March 2010
Procedural Posture
Administration Application / Judgment
Outcome
pre-appointment costs not allowed as administration expenses
Legal Topics
Pre Pack Administration, Administration Expenses, Pre Appointment Costs
Insolvency Law Pre Pack Administration Administration Expenses Pre Appointment Costs

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 4 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Johnson Machine and Tool Co. Limited

Subject Company

Empire Surfacing Limited

Subject Company

Stephen Eyre

Applicant Advocate

Angus Burden

Applicant Advocate

Procedural Posture

Administration Application / Judgment

Legal Issues

  1. 1 Whether pre-appointment costs of an insolvency practitioner in a pre-pack administration should be treated as an administration expense

Ratio Decidendi

It is not appropriate to treat pre-appointment costs as administration expenses in these pre-pack administration cases because the balance of advantage does not clearly favour creditors over management, and such costs do not arise from matters within the administration itself.

Court Disposition

pre-appointment costs not allowed as administration expenses