The Education Administration Rules 2018

CHAPTER 3 Education administrator’s proposals

Education administrator’s proposals - additional content

3.8.—(1) The education administrator’s statement of proposals made under paragraph 49 of Schedule B1(1) must identify the proceedings and, in addition to the matters set out in paragraph 49, contain—

(a) any other trading names of the further education body;

(b) details of the education administrator’s appointment, including—

(i) the date of the appointment, and

(ii) the person who made the application for the appointment;

(c) the names of the relevant officers of the further education body and details of any interest in the further education body they may have;

(d) an account of the circumstances giving rise to the appointment of the education administrator;

(e) the date on which the proposals were sent to the creditors;

(f) if a statement of the further education body’s affairs has been submitted—

(i) a copy or summary of it, except so far as an order under rule 3.31 or 3.32 limits disclosure of it, and excluding any schedule referred to in rule 3.3(5), or the particulars relating to individual creditors contained in any such schedule,

(ii) details of who provided the statement of affairs, and

(iii) any comments which the education administrator may have on the statement of affairs;

(g) if an order under rule 3.31 or 3.32 has been made—

(i) a statement of that fact, and

(ii) the date of the order;

(h) if no statement of affairs has been submitted—

(i) details of the financial position of the further education body at the latest practicable date (which must, unless the court otherwise orders, be a date not earlier than that on which the further education body entered into education administration), and

(ii) an explanation as to why there is no statement of affairs;

(i) a full list of the further education body’s creditors if either—

(i) no statement of affairs has been submitted, or

(ii) a statement of affairs has been submitted but does not include such a list, or the education administrator believes the list included is less than full;

(j) a statement (which must comply with paragraph (4) of this rule where that paragraph applies) of how it is envisaged that the purpose of the education administration will be achieved and how it is proposed that the education administration will end;

(k) the manner in which the affairs and business of the further education body—

(i) have, since the date of the education administrator’s appointment, been managed and financed, including, where any assets have been disposed of, the reasons for the disposals and the terms upon which the disposals were made, and

(ii) will continue to be managed and financed.

(2) The list of creditors required by paragraph (1)(i) must contain the details set out in paragraph (3) except where paragraphs (5) and (6) apply.

(3) The particulars required by paragraph (2) are as follows and must be given in this order—

(a) the name and postal address of each creditor;

(b) the amount of the debt owed to the creditor;

(c) details of any security held by the creditor;

(d) the date on which any such security was given; and

(e) the value of any such security.

(4) This paragraph applies where it is proposed that the education administration will end by the further education body moving to a creditors’ voluntary liquidation, and, in that case, the statement required by paragraph (1)(j) of this rule must include—

(a) details of the proposed liquidator;

(b) where applicable, the declaration required by section 231 of the Act; and

(c) a statement that creditors may nominate a different person as liquidator in accordance with paragraph 83(7)(a) of Schedule B1 and rule 3.40(6).

(5) This paragraph applies where the particulars required by paragraph (3) relate to creditors who are either—

(a) employees or former employees of the further education body; or

(b) consumers claiming amounts paid in advance for the supply of goods or services.

(6) Where paragraph (5) applies—

(a) the list of creditors required by paragraph (1)(i) must state separately for each of paragraphs (5)(a) and (b) the number of creditors and the total of the debt owed to them; and

(b) the particulars required by paragraph (3) in respect of such creditors must be set out in separate schedules to the list of creditors for each of paragraphs (5)(a) and (b); and

(c) the education administrator must not deliver any such schedule to the registrar of companies with the statement of proposals.

(7) The statement made by the education administrator must also include—

(a) to the best of the education administrator’s knowledge and belief, an estimate of the value of—

(i) the prescribed part (whether or not the education administrator might be required under section 176A to make the prescribed part available for the satisfaction of unsecured debts), and

(ii) the further education body’s net property (as defined by section 176A(6)); and

(b) a statement whether the education administrator proposes to make an application to the court under section 176A(5) and, if so, the reason for the application.

(8) The education administrator may exclude from an estimate under paragraph (7)(a) information the disclosure of which could seriously prejudice the commercial interests of the further education body.

(9) If the exclusion of such information affects the calculation of an estimate, the report must say so.

(10) Where applicable, the statement of proposals must also include—

(a) a statement of any pre-administration costs charged or incurred by the education administrator or, to the education administrator’s knowledge, by any other person qualified to act as an insolvency practitioner;

(b) a statement that the payment of any unpaid pre-administration costs as an expense of the education administration is subject to approval by the court under rule 6.11.

Statement of pre-administration costs

3.9.  A statement of pre-administration costs under rule 3.8(10)(a) must include—

(a) details of any agreement under which the fees were charged and expenses incurred including the parties to the agreement and the date on which the agreement was made;

(b) details of the work done for which the fees were charged and expenses incurred;

(c) an explanation of why the work was done before the further education body entered education administration and how it had been intended to further the achievement of the objective in section 16 of the Technical and Further Education Act;

(d) a statement of the amount of the pre-administration costs, setting out separately—

(i) the fees charged by the education administrator,

(ii) the expenses incurred by the education administrator,

(iii) any fees charged (to the education administrator’s knowledge) by any other person qualified to act as an insolvency practitioner (and if more than one, by each separately), and

(iv) any expenses incurred (to the education administrator’s knowledge) by any other person qualified to act as an insolvency practitioner (and if more than one, by each separately);

(e) a statement of the amounts of pre-administration costs which have already been paid (set out separately as under sub-paragraph (d));

(f) the identity of the person who made the payment or, if more than one person made the payment, the identity of each such person and of the amounts paid by each such person (set out separately as under sub-paragraph (d));

(g) a statement of the amount of unpaid pre-administration costs (set out separately as under sub-paragraph (d)).

Ancillary provisions about delivery of education administrator’s proposals

3.10.—(1) Where the court orders, upon an application by the education administrator under paragraph 107 of Schedule B1, an extension of the period for providing the education administrator’s proposals, the education administrator must as soon as reasonably practicable after the making of the order deliver a notice of the extension to—

(a) every creditor of the further education body;

(b) every member of the further education body of whose address the education administrator is aware;

(c) the registrar of companies; and

(d) the appropriate national authority.

(2) The notice must—

(a) identify the proceedings;

(b) identify the registered office of the further education body; and

(c) state the date to which the court has ordered the extension.

(3) The education administrator is taken to comply with paragraph (1)(b) if the education administrator publishes a notice complying with paragraph (4).

(4) A notice under paragraph (3) must—

(a) be advertised in such manner as the education administrator thinks fit;

(b) state that members of the further education body may request in writing a copy of the statement of proposals or notice of the extension, and state the address to which to write; and

(c) be published as soon as reasonably practicable after the education administrator has delivered the statement of proposals or notice of the extension to the further education body’s creditors.

Revision of education administrator’s proposals

3.11.—(1) Where paragraph 54(1) of Schedule B1(2) applies, the education administrator’s revised proposals must identify the proceedings and include—

(a) any other trading names of the further education body;

(b) details of the education administrator’s appointment, including—

(i) the date of the appointment, and

(ii) the person who made the application for the appointment;

(c) details of the relevant officers and details of any interest in the further education body which they may have;

(d) a summary of the original proposals and the reason or reasons for the revised proposals;

(e) details of the revised proposals, including details of the education administrator’s assessment of the likely impact of the revised proposal upon creditors generally or upon each class of creditor;

(f) where the revised proposals relate to the ending of the education administration by a creditors’ voluntary winding up and the nomination of a person to be the liquidator of the further education body—

(i) details of the proposed liquidator,

(ii) where applicable, the declaration required by section 231 of the Act, and

(iii) a statement that the creditors may nominate a different person as liquidator in accordance with paragraph 83(7)(a) of Schedule B1 and rule 3.40(6); and

(g) any other information that the education administrator thinks necessary.

(2) In accordance with paragraph 54(2) of Schedule B1, the education administrator must send a copy of the revised proposals to the persons set out in that paragraph of Schedule B1 within 14 days after the education administrator’s revision of those proposals.

(3) A notice under paragraph 54(4) of Schedule B1, where the further education body is a company, must—

(a) be advertised in such manner as the education administrator thinks fit; and

(b) state that members may request in writing a copy of the revised proposals, and state the address to which to write.

(4) As soon as reasonably practicable after sending the copy of the revised proposals, the education administrator must deliver a copy to the registrar of companies accompanied by a notice which must contain—

(a) identification details for the proceedings; and

(b) the date of the revised proposals.

(1)

Paragraph 49(4) is amended by paragraph 10(2) of Schedule 9 to the Small Business, Enterprise and Employment Act 2015 (c. 26).

(2)

Paragraph 54 is modified by paragraph 14 of Schedule 3 and paragraph 13 of Schedule 4 to the Technical and Further Education Act 2017.