Court grants two-year administration extension following complex application

Background

Our Insolvency Team was instructed by the administrator of a company in administration to apply to the court for a further extension to the administration period.

The administration could not yet be concluded due to ongoing external matters outside the administrator’s control, including unresolved claims and issues affecting the timing of creditor distributions. As the administration had already been extended once through creditor consent, any further extension required approval from the court.

Given the courts’ increasingly strict approach to extension applications, it was essential to demonstrate not only why additional time was required, but also how the continued administration would benefit creditors and achieve the statutory purpose of administration.

Our support

Our team worked closely with the administrator to prepare detailed evidence in support of the application, including the progress already made during the administration, the outstanding issues preventing closure, and the steps being taken to resolve them.

The team prepared the court application and attended the hearing to address the Judge on why a further extension was justified in the circumstances. Particular emphasis was placed on demonstrating that the purpose of the administration remained achievable and that creditors would benefit from the administration continuing rather than the company moving into an alternative insolvency process.

Outcome

Following a successful application, the Senior Circuit Judge sitting as a Judge of the High Court granted a two-year extension to the administration period. This will allow the administrator sufficient time to continue dealing with the outstanding matters, maximise potential recoveries, and progress distributions to creditors whilst the external issues are resolved.