How Often Does an Administrator need to Report to Creditors ?
As a company creditor, your initial contact from the administrator will be to confirm his or her appointment. You should expect to receive a letter in addition to the insolvency practitioner’s notice of appointment in the London Gazette.
Following on from this, you will receive a report within eight weeks known as ‘the administrator’s proposals’ which will outline what steps they’ve taken to date if any, and what they propose to do in the future. At this point, you will also receive an invitation to the initial creditors meeting unless:
(a) the company already owns sufficient property to pay all the creditors in full,
(b) a prescribed part of property, covered by a floating charge is made available for the payment of unsecured debts,
(c) that the administration would not rescue the company as a going concern, or achieve a better scenario for creditors than a winding up.
Written Updates Every 6 Months
After the proposals, you should expect to receive a written update every six months that the administration continues. The law specifies that the report should be sent within one month ‘of every six month anniversary.’ This would be earlier in two cases:
(a) if the current administrator vacates office.
(b) if an extension to the administration is granted.