Vol 18 (2021) - Issue 4

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Re Seabrook Road Ltd

Synopsis
In Re Seabrook Road Ltd 1 the High Court provided guidance on the considerations the court takes into account when determining whether an out of court appointment of an administrator is valid. The court held that not only is it necessary for a notice of intention to appoint an administrator (a 'NOITA') to be validly served, but there also has to be a genuine and settled intention to appoint an administrator. In Re Seabrook it was held that neither of these factors were present, with the effect that the company's purported NOITA was invalid and the company was unable to benefit from the interim moratorium imposed by paragraph 44 of Schedule B1 to the Insolvency Act 1986 (the 'Insolvency Act').