An administrator was appointed over a company out of court and
the administration extended on a handful of occasions. The
administrator was then replaced by block transfer, but the
administration subsequently expired before it was concluded.
The new administrator therefore applied for a new administration
order to apply retrospectively from the date of expiry of the old
The court was satisfied that the new administrator had standing
to apply for an administration order as a creditor for unpaid fees.
The court was also satisfied that there was grounds for making the
new administration order, the company still being insolvent and the
statutory purpose still being achievable.
What exercised the Judge was whether he could make an
administration order with retrospective effect.
On the facts of this case, the Judge identified that certain
creditors would be prejudiced as to interest if a retrospective
order was made and it did not appear that this would be offset by
increased recoveries. In light of these uncertainties, the new
administrator withdrew the application for a retrospective
administration order and the Judge did not have to decide the
issue, simply making a prospective administration.
Whilst the Judge cited authority to make a retrospective
administration order, he said those authorities needed to be
treated with caution and each case assessed on its own facts.
In the matter of Elgin Legal Limited  EWHC 2523 (CH)
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