The Investment Bank Special Administration (England and Wales) Rules 2011

Notice of proposed distribution

175.—(1) Where an administrator is proposing to make a distribution to creditors, the administrator shall give notice of that fact.

(2) The notice in paragraph (1) shall—

(a) state whether the distribution is to preferential creditors or preferential creditors and unsecured creditors; and

(b) where the administrator proposes to make a distribution to unsecured creditors, state the value of the prescribed part, except where the court has made an order under section 176A(5) of the 1986 Act.

(3) The notice in paragraph (1) shall be given to—

(a) all creditors whose addresses are known to the administrator;

(b) the FSA;

(c) in a special administration (bank administration), the FSCS; and

(d) in a special administration (bank administration), before the Bank of England has given an Objective A Achievement Notice, the Bank of England.

(4) Subject to paragraph (5)(b), before declaring a dividend the administrator shall by notice invite the creditors to prove their debts. Such notice—

(a) shall be gazetted; and

(b) may be advertised in such other manner as the administrator thinks fit.

(5) A notice pursuant to paragraph (1) must, in addition to the standard contents—

(a) state that it is the intention of the administrator to make a distribution to creditors within the period of 2 months from the last date for proving;

(b) specify whether the proposed dividend is interim or final;

(c) specify a date up to which proofs may be lodged being a date which—

(i) is the same date for all creditors; and

(ii) is not less than 21 days from that of the notice.

(6) Where a dividend is to be declared for preferential creditors—

(a) the notice pursuant to paragraph (1) need only to be given to those creditors in whose case the administrator has reason to believe that their debts are preferential; and

(b) the notice pursuant to paragraph (3) need only be given if the administrator thinks fit.