Rule 2.4 Insolvency Rules 1986

Rule 2.4 lists the contents of the Application and Witness Statement that are required to be filed in Court when applying for a Company to be placed into Administration.

In practice, these documents will be prepared by the proposed Administrator to ensure that they comply with this Rule.

 

2.4 Contents of application and witness statement in support

 

(1) The administration application shall contain a statement of the applicant's belief that the company is, or is likely to become, unable to pay its debts, except where the applicant is the holder of a qualifying floating charge and is making the application in reliance on paragraph 35.

 

(2) There shall be attached to the application a witness statement in support which shall contain– 

 

(a) a statement of the company's financial position, specifying (to the best of the applicant's knowledge and belief) the company's assets and liabilities, including contingent and prospective liabilities;

 

(b) details of any security known or believed to be held by creditors of the company, and whether in any case the security is such as to confer power on the holder to appoint an administrative receiver or to appoint an administrator under paragraph 14. If an administrative receiver has been appointed, that fact shall be stated;

 

(c) details of any insolvency proceedings in relation to the company including any petition that has been presented for the winding up of the company so far as within the immediate knowledge of the applicant;

 

(d) where it is intended to appoint a number of persons as administrators, details of the matters set out in paragraph 100(2) regarding the exercise of the function of the administrators; and

 

(e) any other matters which, in the opinion of those intending to make the application for an administration order, will assist the court in deciding whether to make such an order, so far as lying within the knowledge or belief of the applicant.

 

(3) Where the application is made by the holder of a qualifying floating charge in reliance on paragraph 35, he shall give sufficient details in the witness statement in support to satisfy the court that he is entitled to appoint an administrator under paragraph 14.

 

(4) The witness statement shall state whether, in the opinion of the person making the application, (i) the EC Regulation will apply and (ii) if so, whether the proceedings will be main proceedings, secondary proceedings or territorial proceedings.