PART 3Modifications of the Law of Insolvency: Notification and Publication

Reports to creditors16

1

This regulation applies where, on or after 5th May 2004—

a

a liquidator is appointed in accordance with section 100 of the 1986 Act, Article 86 of the 1986 Order (creditors' voluntary winding up: appointment of liquidator) or paragraph 83 of Schedule B1 to the 1986 Act (moving from administration to creditors' voluntary liquidation);

b

a winding-up order is made by the court;

c

a provisional liquidator is appointed; or

d

administration.

2

The liquidator, provisional liquidator or administrator (as the case may be) must send a report to every known creditor once in every 12 months beginning with the date when his appointment has effect.

3

The requirement in paragraph (2) does not apply where a liquidator, provisional liquidator or administrator is required by order of the court to send a report to creditors at intervals which are more frequent than those required by this regulation.

4

This regulation is without prejudice to any requirement to send a report to creditors, imposed by the court on the liquidator, provisional liquidator or administrator, which is supplementary to the requirements of this regulation.

5

A liquidator, provisional liquidator or administrator commits an offence if he fails without reasonable excuse to comply with an applicable requirement under this regulation, and is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

6

For the purposes of this regulation—

a

known creditor” means—

i

a creditor who is known to the liquidator, provisional liquidator or administrator, and

ii

in a case falling within paragraph (1)(b) or (c), a creditor who is specified in the credit institution’s statement of affairs (within the meaning of section 131 of the 1986 Act or Article 111 of the 1989 Order);

b

report” means a written report setting out the position generally as regards the progress of the winding up, provisional liquidation or administration (as the case may be).