Overview

This report looks at the changes brought in by amendments to the Insolvency Rules and their impact. It also provides several case updates including:

• The recent case of Re Cornercare Limited, where the High Court considered whether directors could file successive notices of intention to appoint administrators.

• The court-appointed administrators of Johnson Machine and Tool Company Limited and Empire Surfacing Limited’s application to the High Court for an order that their pre-appointment costs be treated as an administration expense. In each case, the business and assets of the company had been sold back to parties connected with the company’s directors by way of a pre-pack sale.

• The matter of Hudson and others v Gambling Commission (Re Frankice (Golders Green) Limited (2010) EWHC 1229 (Ch). In this case the High Court ruled that the scope of the moratorium imposed by Paragraph 43 (6) of Schedule B1 of the Insolvency Act 1986 extended to a regulatory panel review hearing instigated by the Gambling Commission which threatened the closure of nearly 100 gaming centres which were being traded by administrators.

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