Legal Updates
Extension of administration - important changes in Court of Session practice
Attached is a note received from the Court of Session giving guidance on how the Court is now dealing with applications for an extension of an Administration.
The Court requires creditors to be given notice of the intended extension. The Court appears to be fairly flexible as to how such notice can be given but specifically mentions that notice can be given in the Progress Report provided creditors are made aware that can object to the proposed extension. Where such notice has not been given the court will grant what it describes as an interim extension to allow for intimation to be made to creditors.
In addition, the Court will not now ordinarily grant extensions for longer than 12 months. Where a longer period is sought the court will grant an initial extension for 12 months with subsequent extensions being dealt with by way of motion. Proceeding in this way avoids the cost of repeated application to court but allows the court to review matters on an annual basis.
Court of Session Note
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