Court rules on validity of administrators’ appointment after notice failure
The Insolvency and Companies Court (ICC) has ruled that an out-of-court administration appointment, which took place without the applicants having given the requisite five business days’ prior written notice to the qualifying floating charge holders (QFCH)is not automatically void. However, it said it is instead an irregularity for which an affected party can apply for discretionary relief, which may include the appointment of replacement administrators proposed by the QFCH.
