Administration order refused

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The court will make an administration order if it is satisfied that the company is or is likely to become unable to pay its debt and the administration order is reasonably likely to achieve the purpose of the administration. There was insufficient supporting evidence for the proposed administrator’s assertion that the administration of the company would achieve one of the statutory purposes of administration. The court could not make an administration order but appointed a provisional liquidator instead.

Creditors of Safehosts (London) Ltd made an application to court for an order that it be placed into administration. At the time of the application, the company was insolvent as it owed debts amounting to at least £1.7m.

The court held that it was plainly clear that the company was insolvent and could not pay its debts…

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