Extension Of An Administrators Appointment - Court Of Session Clarifies Procedure

Author:Mr Steven Jansch and Derek Ellery
Profession:Biggart Baillie
 
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An administrator appointed either by the court or using the out of court procedure takes office for an initial period of 12 month. The administrator can apply for an extension of his term of office and must do so before the expiry of the twelve month period or his appointment will automatically cease. Unfortunately the need to make this application is often only addressed close to the expiry of the 12 month term. The Court of Session this month formally clarified the information which it will require to be produced with an application for an extension of an administrator's appointment. Along with the application there must be submitted:-

the letter or report which intimated to the creditors the intention to extend the period of administration, which must have been given in time to give creditors a reasonable opportunity to lodge objections with the administrators; and letter(s) or email(s) from the secured creditor(s) confirming their consent to the extension. In...

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