Part 10

Insolvency

Companies etc.

Prohibition of appointment of administrative receiver
250
1
The following shall be inserted after Chapter III of Part III of the Insolvency Act 1986 (receivership: receivers’ powers)—
CHAPTER IV

PROHIBITION OF APPOINTMENT OF ADMINISTRATIVE RECEIVER

Floating charge holder not to appoint administrative receiver
72A
1
The holder of a qualifying floating charge in respect of a company’s property may not appoint an administrative receiver of the company.
2
In Scotland, the holder of a qualifying floating charge in respect of a company’s property may not appoint or apply to the court for the appointment of a receiver who on appointment would be an administrative receiver of property of the company.
3
In subsections (1) and (2)—
- “holder of a qualifying floating charge in respect of a company’s property” has the same meaning as in paragraph 14 of Schedule B1 to this Act, and
- “administrative receiver” has the meaning given by section 251.
4
This section applies—
a
to a floating charge created on or after a date appointed by the Secretary of State by order made by statutory instrument, and
b
in spite of any provision of an agreement or instrument which purports to empower a person to appoint an administrative receiver (by whatever name).
5
An order under subsection (4)(a) may—
a
make provision which applies generally or only for a specified purpose;
b
make different provision for different purposes;
c
make transitional provision.
6
This section is subject to the exceptions specified in sections 72B to 72G.

First exception: capital market
72B
1
Section 72A does not prevent the appointment of an administrative receiver in pursuance of an agreement which is or forms part of a capital market arrangement if—
a
a party incurs or, when the agreement was entered into was expected to incur, a debt of at least £50 million under the arrangement, and
b
the arrangement involves the issue of a capital market investment.
2
In subsection (1)—
- “capital market arrangement” means an arrangement of a kind described in paragraph 1 of Schedule 2A, and
- “capital market investment” means an investment of a kind described in paragraph 2 or 3 of that Schedule.

Second exception: public-private partnership
72C
1
Section 72A does not prevent the appointment of an administrative receiver of a project company of a project which—
a
is a public-private partnership project, and
b
includes step-in rights.
2
In this section “public-private partnership project” means a project—
a
the resources for which are provided partly by one or more public bodies and partly by one or more private persons, or
b
which is designed wholly or mainly for the purpose of assisting a public body to discharge a function.
3
In this section—
- “step-in rights” has the meaning given by paragraph 6 of Schedule 2A, and
- “project company” has the meaning given by paragraph 7 of that Schedule.

Third exception: utilities
72D
1
Section 72A does not prevent the appointment of an administrative receiver of a project company of a project which—
a
is a utility project, and
b
includes step-in rights.
2
In this section—
a
“utility project” means a project designed wholly or mainly for the purpose of a regulated business,
b
“regulated business” means a business of a kind listed in paragraph 10 of Schedule 2A,
c
“step-in rights” has the meaning given by paragraph 6 of that Schedule, and
d
“project company” has the meaning given by paragraph 7 of that Schedule.

Fourth exception: project finance
72E
1
Section 72A does not prevent the appointment of an administrative receiver of a project company of a project which—
a
is a financed project, and
b
includes step-in rights.
2
In this section—
a
a project is “financed” if under an agreement relating to the project a project company incurs, or when the agreement is entered into is expected to incur, a debt of at least £50 million for the purposes of carrying out the project,
b
“project company” has the meaning given by paragraph 7 of Schedule 2A, and
c
“step-in rights” has the meaning given by paragraph 6 of that Schedule.

Fifth exception: financial market
72F
Section 72A does not prevent the appointment of an administrative receiver of a company by virtue of—
a
a market charge within the meaning of section 173 of the Companies Act 1989 (c. 40),
b
a system-charge within the meaning of the Financial Markets and Insolvency Regulations 1996 (S.I. 1996/1469),
c
a collateral security charge within the meaning of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 (S.I. 1999/2979).

Sixth exception: registered social landlord
72G
Section 72A does not prevent the appointment of an administrative receiver of a company which is registered as a social landlord under Part I of the Housing Act 1996 (c. 52) or under Part 3 of the Housing (Scotland) Act 2001 (asp 10).

Sections 72A to 72G: supplementary
72H
1
Schedule 2A (which supplements sections 72B to 72G) shall have effect.
2
The Secretary of State may by order—
a
insert into this Act provision creating an additional exception to section 72A(1) or (2);
b
provide for a provision of this Act which creates an exception to section 72A(1) or (2) to cease to have effect;
c
amend section 72A in consequence of provision made under paragraph (a) or (b);
d
amend any of sections 72B to 72G;
e
amend Schedule 2A.
3
An order under subsection (2) must be made by statutory instrument.
4
An order under subsection (2) may make—
a
provision which applies generally or only for a specified purpose;
b
different provision for different purposes;
c
consequential or supplementary provision;
d
transitional provision.
5
An order under subsection (2)—
a
in the case of an order under subsection (2)(e), shall be subject to annulment in pursuance of a resolution of either House of Parliament,
b
in the case of an order under subsection (2)(d) varying the sum specified in section 72B(1)(a) or 72E(2)(a)
(whether or not the order also makes consequential or transitional provision), shall be subject to annulment in pursuance of a resolution of either House of Parliament, and
c
in the case of any other order under subsection (2)(a) to (d), may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.
2
The Schedule 2A set out in Schedule 18 to this Act shall be inserted after Schedule 2 to the Insolvency Act 1986 (c. 45).
S. 250 wholly in force at 15.9.2003; s. 250 not in force at Royal Assent see s. 279; s. 250(1) in force for certain purposes at 18.3.2003 by S.I. 2003/765, art. 2, Sch., s. 250 in force at 15.9.2003 by S.I. 2003/2093, art. 2(1), Sch. 1