The Bank Administration (England and Wales) Rules 2009

Bank administrator’s proposals: Objective 2 Stage

29.—(1) This Rule makes provision about the statement of proposals which the bank administrator is required to make under paragraph 49 of Schedule B1 to the Insolvency Act 1986 as it applies during the Objective 2 Stage (in accordance with Table 1 in section 145(6) of the Banking Act 2009).

(2) The statement must include—

(a) details of the court where the proceedings are and the court reference number,

(b) the full name, any other trading names, the registered address and registered number of the bank,

(c) details of the bank administrator’s appointment (including the date),

(d) in the case of joint bank administrators, details of the apportionment of functions,

(e) the names of the directors and secretary of the bank and details of any shareholdings in the bank they have,

(f) an account of the circumstances giving rise to the application for the appointment of the bank administrator,

(g) if a statement of the bank’s affairs has been submitted, a copy or summary of it with the bank administrator’s comments, if any,

(h) if an order limiting the disclosure of the statement of affairs has been made under Rule 2.30 of the Insolvency Rules 1986 (as applied by Rule 58 below), a statement of that fact, as well as—

(i) details of who provided the statement of affairs,

(ii) the date of the order for limited disclosure, and

(iii) the details or a summary of the details that are not subject to that order,

(i) if a full statement of affairs is not provided, the names, addresses and debts of the creditors including details of any security held (or, in the case of depositors, a single statement of their aggregate debt),

(j) if no statement of affairs has been submitted, details of the financial position of the bank at the latest practicable date (which must, unless the court otherwise orders, be a date not earlier than that on which the bank entered bank administration), a list of the bank’s creditors including their names, addresses and details of their debts including any security held, (or, in the case of depositors, a single statement of their aggregate debt), and an explanation as to why there is no statement of affairs,

(k) the basis upon which it is proposed that the bank administrator’s remuneration should be fixed under Rule 2.106 of the Insolvency Rules 1986 (as applied by Rule 58 below),

(l) details of whether (and why) the bank administrator proposes to apply to the court under section 176A(5) of the Insolvency Act 1986 (omission of distribution to unsecured creditors: as applied by Table 2 in section 145(6) of the Banking Act 2009) (unless the bank administrator intends to propose a company voluntary arrangement),

(m) an estimate of the value of the prescribed part for the purposes of section 176A (unless the bank administrator intends to propose a company voluntary arrangement) certified as being made to the best of the bank administrator’s knowledge and belief,

(n) an estimate of the value of the bank’s net property (unless the bank administrator intends to propose a company voluntary arrangement) certified as being made to the best of the bank administrator’s knowledge and belief,

(o) whether the bank administrator proposes to pursue Objective 2(a) or Objective 2(b),

(p) if the bank administrator proposes to pursue Objective 2(a), how it is envisaged the purpose of the bank administration will be achieved,

(q) if the bank administrator proposes to pursue Objective 2(b)—

(i) how it is envisaged the purpose of the bank administration will be achieved, and

(ii) how it is proposed that the bank administration shall end (winding-up or voluntary arrangement, in accordance with section 154 of the Banking Act 2009),

(r) if the bank administrator has decided not to call a meeting of creditors, the reasons,

(s) the manner in which the affairs and business of the bank have been managed and financed since the date of the bank administrator’s appointment (including the reasons for and terms of any disposal of assets),

(t) the manner in which the affairs and business of the bank will be managed and financed if the bank administrator’s proposals are approved, and

(u) any other information which the bank administrator thinks necessary to enable creditors to decide whether or not to vote for the approval of the proposals.

(3) In the case of bank administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009—

(a) the statement under paragraph 49 of Schedule B1 must state whether any payment is to be made to the bank from a scheme under a resolution fund order, or

(b) if that information is unavailable when the statement under paragraph 49 is made, the bank administrator must issue a supplemental statement when the information is available.

(4) The statement—

(a) may exclude information, the disclosure of which could seriously prejudice the commercial interests of the bank, and

(b) must include a statement of any exclusion.