The Compendium

A Comprehensive Companion for All in the Insolvency and Restructuring Profession

  1. The Nominee, who is not the Liquidator or Administrator, submits a report to the court stating her opinion that meetings of the company and its creditors should be summoned to consider the proposal, or, if they are an Administrator or Liquidator summons a meeting of the company and its creditors to consider the proposal;
  2. The directors of the company file (or in Scotland, lodge) documents and statements with the court to begin a Moratorium where the directors propose a Voluntary Arrangement;
  3. An Administrative Receiver is appointed in relation to the company;
  4. The company enters Administration;
  5. A resolution is passed for a Creditors’ Voluntary Liquidation or an Administrator issues a notice which converts the Administration to Creditors’ Voluntary Liquidation;
  6. A creditors decision process is held which converts a Members’ Voluntary Liquidation into a Creditors’ Voluntary Liquidation;
  7. A winding-up Order is made, or an Administration is converted to windingup by court order.

Note: Schemes of Arrangement, exit of Administration by dissolution and Members’ Voluntary Liquidations are not ‘insolvency events’.

Insolvency events happen in relation to pensions, and in particular, the Pension Protection Fund. When an insolvency event occurs, in relation to a sponsoring employer of an occupational pension scheme, a notification under section 120 of the Pensions Act 2004 must be issued by the Insolvency Practitioner (IP) to the Pension Protection Fund, The Pensions Regulator and the trustees of the fund.

If the pension scheme then enters an assessment, the IP must confirm whether the pension scheme can be rescued.

The IP will then:

  • Issue a withdrawal notice to the Pension Protection Fund; the scheme then continues, or winds up outside the Fund; or
  • The IP issues a ‘ceasing to act’ notice to the Pension Protection Fund; or
  • The IP issues a scheme failure notice and the scheme continues through the assessment.

[See ‘Administration’, ‘Pension Protection Fund’, ‘Creditors’ Voluntary Liquidation’, ‘Members’ Voluntary Liquidation’, ‘Insolvency Practitioner’, ‘IP’, ‘The Pensions Regulator’, ‘Withdrawal Notice’, ‘Ceasing to Act Notice’, ‘Scheme Failure Notice’, ‘Moratorium’ and ‘Nominee’.]