The Water Industry (Special Administration) (England and Wales) Rules 2024

Creditors’ decision for the nomination of alternative liquidator (rule 3.42A)

47.  Chapter 7 of Part 3, so far as, by virtue of this Part, it applies for the purposes of these Rules, has effect as if, after rule 3.42, there were inserted—

“Creditors’ decision for the nomination of alternative liquidator

3.42A.— (1) Where, under rule 3.35(1)(j)(ii) or rule 3.42(1)(f), the special administrator has proposed that the special administration will end by the company’s entering creditors’ voluntary liquidation, the special administrator must, in the circumstances detailed in paragraph (2), seek a decision from the company’s creditors for the purpose of nominating a person other than the person named as the proposed liquidator in the special administrator’s proposals or revised proposals.

(2) The special administrator must seek a decision from the company’s creditors where such decision is requested by creditors of the company whose debts amount to at least 10 per cent of the total debts of the company.

(3) The request for a decision from the company’s creditors for the purpose set out in paragraph (1) must be made within eight days of the date on which the special administrator’s statement of proposals is delivered, or, where revised proposals have been sent out relating to the ending of the special administration by a creditors’ voluntary liquidation, within eight days of the date on which the revised proposals are delivered.

(4) A request under this rule must include—

(a) a statement of the requesting creditor’s claim, together with—

(i) a list of the creditors concurring with the request, and of the amounts of the debts respectively owed to them in the special administration; and

(ii) from each creditor concurring, written confirmation of that creditor’s concurrence; or

(b) a statement of the amount of the debt owed to the requesting creditor and that that alone is sufficient without other creditors.

(5) Where a decision has been requested under this rule, the expenses of the requisitioned decision must be paid either, if the creditors so decide, as an expense of the special administration, or otherwise by the requesting creditor.

(6) A decision requested under this rule must be reached within 21 days of the special administrator’s receipt of the notice requesting the decision procedure.”.