66 [F1344 If the debts and other liabilities payable under paragraph 64A have been met, the administrator of a companyF1344] may make a payment otherwise than in accordance with paragraph 65 or paragraph 13 of Schedule 1 if he thinks it likely to assist achievement of the purpose of administration.
Definitions used in Schedule B1, paragraph 66 4
- administrator
1 (1) For the purposes of this Act “administrator” of a company means a person appointed under this Schedule to manage the company’s affairs, business and property.
Defined in Sch.B1 para.1(1) · see it in the full Act“administrator” has the meaning given by paragraph 1 and, where the context requires, includes a reference to a former administrator,
Defined in Sch.B1 para.111(1) · see it in the full Act- the company
2 Section 233B does not apply in relation to a contract for the supply of goods or services to a company (“the company”) where any of paragraphs 3 to 11 applies.
Defined in Sch.4ZZA para.2 · see it in the full Act- company
(1A) In this Schedule, “company” means—
(a)a company registered under the Companies Act 2006 in England and Wales or Scotland,
(b)a company incorporated in an EEA State ..., or
(c)a company not incorporated in an EEA State but having its centre of main interests in a member State (other than Denmark) or in the United Kingdom .
Defined in Sch.B1 para.111(1A) · see it in the full Act- the purpose of administration
“the purpose of administration” means an objective specified in paragraph 3, and
Defined in Sch.B1 para.111(1) · see it in the full Act
Cases considering Schedule B1, paragraph 66 12
Debenhams Retail Ltd, Re
Paragraph 66 was an appropriate, and perhaps the most obvious, authority for payment of furlough remuneration. The payments were likely to assist achievement of the administration’s purpose, so the statutory condition was necessarily met (see paras [59]; [66]-[69]).
IN THE MATTER OF: BULB ENERGY LIMITED
The court interpreted the provision broadly. It permits payments to unsecured creditors outside ordinary priority rules where the administrators think that doing so is likely to assist achievement of the administration purpose. (see paras [26]-[28])
Debenhams Retail Ltd, Re
Paragraph 66 can provide a statutory basis for payments outside the usual ranking of priorities where the administrator considers that payment likely to assist achievement of the purpose of administration. It was available but was not the necessary basis for the payments in issue (see paras [39]–[43]).
- Carluccio's Ltd, Re Insolvency Act 1986
- Nortel Networks UK Ltd, Re
- Neumans LLP (a firm) v Andronikou & Ors
- Nortel Networks SA, Re
- Collins & Aikman Europe SA Collins & Ors, Re Insolvency Act 1986
- Strategic Value Capital Solutions Master Fund LP & Ors v AGPS BondCo PLC
- Neumans LLP (A Firm) v Andrew Andronikou & Ors
- Lune Metal Products Ltd v Getliffe & Ors
- Cross Transport Ltd (In Administration), Re
What each judgment says about Schedule B1, paragraph 66 is in the case-law panel in the full Act.
Amendments and notes
5 notes from legislation.gov.uk
Amendments
- F1344Words in Sch. B1 para. 66 substituted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 31(5) (with ss. 2(2), 5(2))
Modifications
- C1410Sch. B1 paras. 59-75 applied (with modifications) (E.W.) (15.3.2024) by The Water Industry (Special Administration) Regulations 2024 (S.I. 2024/205), regs. 2(2), 5(1), 19-25 (with reg. 64)
- C1429Sch. B1 para. 66 restricted (6.3.2008) by The Regulated Covered Bonds Regulations 2008 (S.I. 2008/346), reg. 46, Sch. para. 2(5)
- C1430Sch. B1 para. 66 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
- C1431Sch. B1 para. 66 applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 37 (with reg. 5) (as amended (4.1.2024) by S.I. 2023/1399, regs. 1(2), 4, 11)