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

Approval by the court

146.—(1) This rule applies where a meeting of the creditors’ committee has taken place in accordance with rule 145 or where there is no creditors’ committee.

(2) The administrator shall apply to the court for approval of the distribution plan.

(3) The administrator shall send a copy of the distribution plan to—

(a) all persons who have submitted a claim of the type described in regulation 11(1);

(b) all persons notified under rule 143;

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

(d) the FSA,

and details as to how to find out the venue for the hearing shall be sent out with the copy of the distribution plan.

(4) The court, on receiving an application under paragraph (2) shall fix the venue for the hearing and in fixing the venue shall have regard to the desirability of the application being heard as soon as is reasonably practicable subject to the persons notified under paragraph (3) and the members of the creditors’ committee being able to attend and make representations at the hearing.

(5) On hearing the application under paragraph (2) the court may—

(a) make an order approving the distribution plan with or without modification if satisfied that—

(i) where rule 143 applies, the administrator has made the necessary notifications in accordance with that rule; and

(ii) where there is a creditors’ committee, either that the committee has approved the distribution plan with or without modification or where the committee has been unable to approve the plan, the court has heard from the members of the committee or has given them an opportunity to explain why the committee were unable to approve the plan;

(b) dismiss the application;

(c) adjourn the hearing (generally or to a specified date); or

(d) make any other order which the court thinks appropriate.