The Insolvency (Amendment) Rules (Northern Ireland) 2006

PART 3 AMENDMENTS TO PART 3 OF THE PRINCIPAL RULES

Amendment to Rule 3.09

9.  After Rule 3.09(4) there shall be inserted—

“(5) The receiver’s report under Article 58(1) shall state, to the best of his knowledge and belief—

(a) an estimate of the value of the prescribed part (whether or not he proposes to make an application under Article 150A(5) or whether Article 150A(3) applies); and

(b) an estimate of the value of the company’s net property.

(6) Nothing in this Rule is to be taken as requiring any such estimate to include any information, the disclosure of which could seriously prejudice the commercial interests of the company. If such information is excluded from the calculation the estimate shall be accompanied by a statement to that effect.

(7) The report shall also state whether, and if so why, the receiver proposes to make an application to court under Article 150A(5).”.

Amendment to Rule 3.21

10.  In paragraph (4) of Rule 3.21 after the word “bankrupt,” there shall be inserted “or a disqualified director,” and for the words “composition or arrangement with his creditors” there shall be substituted “bankruptcy restrictions order”.

Amendment to Rule 3.23

11.  In paragraph (1)(a) of Rule 3.23 omit the words “, or compounds or arranges with his creditors”.

Insertion of new Chapter 8 of Part 3 of the principal Rules

12.  After Chapter 7 of Part 3 of the principal rules there shall be inserted—

“CHAPTER 8 ARTICLE 150A: THE PRESCRIBED PART

Report to creditors

3.40.— (1) This Rule applies where—

(a) a receiver (other than an administrative receiver) is appointed by the court or otherwise under a charge which as created was a floating charge; and

(b) Article 150A applies.

(2) Within 3 months (or such longer period as the court may allow) of the date of his appointment the receiver shall send to creditors, details of whose names and addresses are available to him, notice of his appointment and a report which will include the following matters—

(a) to the best of the receiver’s knowledge and belief—

(i) an estimate of the value of the prescribed part (whether or not he proposes to make an application to the court under Article 150A(5) or Article 150A(3) applies); and

(ii) an estimate of the value of the company’s net property;

(b) whether, and if so, why, he proposes to make an application to court under Article 150A(5); and

(c) whether he proposes to present a petition for the winding up of the company.

(3) Nothing in this Rule is to be taken as requiring any such estimate to include any information, the disclosure of which could seriously prejudice the commercial interests of the company. If such information is excluded from the calculation the estimate shall be accompanied by a statement to that effect.

(4) Where the receiver thinks that it is impracticable to send the report required under paragraph (2) or where full details of the unsecured creditors of the company are not available to him, he may, instead of sending a report as required by this Rule, publish a notice to the same effect in such newspaper as he thinks most appropriate for ensuring that it comes to the notice of the company’s unsecured creditors.

• [E.R. 3.39]

Receiver to deal with prescribed part

3. 41.   Where Rule 3.40 applies—

(a) the receiver may present a petition for the winding up of the company if the ground of the petition is that in Article 102(f);

(b) where a liquidator or administrator has been appointed to the company, the receiver shall deliver up the sums representing the prescribed part to him;

(c) in any other case, the receiver shall apply to the court for directions as to the manner in which he is to discharge his duty under Article 150A(2)(a) and shall act in accordance with such directions as are given by the court.

• [E.R. 3.40]”