Latest Legal News - New Deadline for Administrators to Apply to Court for Extensions (March 2011)

Recent indications from Companies Court Registrars suggest that all applications to extend administration should now be filed at court at least 6 weeks before the end of the administration, so as to allow the court to determine whether to deal with the application on paper or list a hearing.

As yet there is no formal sanction for failing to file an application at least 6 weeks in advance of the end of the administration but a number of occasions have been reported where an administrator has failed to do so and the Registrar hearing the application has refused to make an order providing that that costs of the application be an expense of the administration, leaving the administrator personally liable for any such costs.

It is understood that the court is considering issuing formal guidance in the form of a Practice Note or Direction but in the meanwhile it would be advisable for administrators to err on the side of caution and ensure that applications are filed at court in good time. 

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