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Insolvency Notice Codes and Their Meaning


As a company goes through insolvency proceedings, public announcements, so called 'gazettes', are published. It is possible to search for these announcements online to see if a business is still trading, and if not, where it has got to in the insolvency process. Insolvency developments may take some months to reach the Companies House register, so these announcements are a good way of finding out more quickly if a busines is in trouble.

There are a number of routes that a business can take through insolvency. Each is explained below, together with the codes associated with announcements.

For more information on corporate insolvency and what you do if you are owed money by a company that is going through it, see our article What to do if a Customer goes into Administration Owing You Money.



Administration
When a company is put into administration an insolvency practicioner (IP) is appointed to run the company. Their goal is to try to return money to the creditors of the business by running it as a going concern. They have 12 months to try to do this, for example by selling off parts of the business or its assets, making spending cuts, or finding a buyer for the whole business. Sometimes lenders forgive a percentage of their loans to allow the company to continue trading in the hope that they can get the rest back. If the IP decides that he business cannot be rescued, the company is wound up (liquidated).
2410 Appointment of Administrators Gives details of the date of appointment, name and address of administrators
2411 Administration Orders An administration order paves the way for a company to go into administration and is usually applied for by the directors or shareholders of the company.
2412 Meetings of Creditors An announcement that the administrator has called a meeting of creditors (which can be virtual or physical) where creditors can vote on the IP's proposed approach.
2413 Notices to Members This code covers many different announcements by the administrator as the process proceeds
2414 Deemed Consent (Administration) The administrator writes to creditors with a proposal. Provided they do not receive objections from 10% or more of creditors then the proposal will be deemed to be approved.
Receivership
If a business has taken loans from a creditor which are secured against assets or property, and it fails to meet conditions such as interest payments or loan repayments, then the creditor can appoint a Reciever to recover the loan by selling the assets against which it has been secured. Unlike administration, which has to be run in the best interests of all creditors, receivership has as its primary goal to get back as much of the value of the secured loan as possible. A business placed into recievership is far less likely to trade or restructure its way out of trouble than a company in administration.
2421 Appointment of Administrative Receivers Gives details of the date of appointment, name and address of the receivers
2422 Meetings of Creditors An announcement that the receiver has called a meeting of creditors to present a report on the events leading up to their appointment, a statement of the affairs of the business, and the possible outcome for other creditors
2423 Appointment of Receivers Details the name and address of receivers and asks creditors to state their claims (Scotland)
2424 Deemed Consent (Administrative Receivership) Provided the reciever does not receive objections from 10% or more of creditors then a proposal will be deemed to be approved.
Members' Voluntary Winding Up
Where the decision to go into liquidation is taken voluntarily and the company is solvent and can pay all its creditors in full, the liquidation can be a Members' Voluntary Winding Up or a Members' Voluntary Liquidation (MVL). An Insolvency Practicioner is appointed as Liquidator to oversee the winding up.
2431 Resolution for Winding-Up Announcement that the company passed a special resolution to go into voluntary liquidation at a shareholders' meeting
2432 Appointment of Liquidators Gives details of the date of appointment, name and address of the Liquidators
2433 Notices to Creditors Giving notice to creditors to send full details of their debts to the liquidator by a given deadline
2434 Annual Liquidation Meetings If the liquidataion takes more than a year, there can be meetings of company and creditors at each year's end
2435 Final Meetings (legislation repealed 2017) Final meeting of creditors and final general meeting of company before the company is dissolved
Creditors' Voluntary Winding Up
Where the decision to go into liquidation is taken voluntarily but the company is not solvent and cannot pay all its creditors in full, the liquidation is a Creditors' Voluntary Winding Up or a Creditors' Voluntary Liquidation (CVL). An Insolvency Practicioner is appointed as Liquidator to oversee the winding up.
2441 Resolution for Winding-Up Announcement that the company passed a special resolution to go into voluntary liquidation at a shareholders' meeting
2442 Meetings of Creditors Notice of any meeting of the creditors with theh Liquidator
2443 Appointment of Liquidators Gives details of the date of appointment, name and address of the Liquidators
2444 Annual Liquidation Meetings If the liquidataion takes more than a year, there can be meetings of company and creditors at each year's end
2445 Final Meetings (legislation repealed 2017) Final meeting of creditors and final general meeting of company before the company is dissolved
2446 Notice to Creditors Notice of meeting to consider the Liquidator's proposals
2447 Deemed Consent (CVL) The Liquidator writes to creditors with a proposal. Provided they do not receive objections from 10% or more of creditors then the proposal will be deemed to be approved.
Winding up by the Court
A creditor can apply to the court to wind up a company (also known as a compulsory liquidation) if the company cannot pay its debts. If the court agrees then a winding up order is made and a Liquidator appointed to sell any assets, settle any legal disputes, collect all money that the company is owed and make payments to creditors.
2450 Petitions to Wind-Up (Companies) Giving notice that a petition to wind up the company has been made to the courts
2451 Petitions to Wind-Up (Partnerships) Giving notice that a petition to wind up a partnership has been made to the courts
2452 Winding-Up Order (Companies) Announcing that the court found in favour of winding up the company
2453 Winding-Up Order (Partnerships) Announcing that the court found in favour of winding up the partnership
2454 Appointment of Liquidators Gives details of the date of appointment, name and address of the Liquidators
2455 Meetings of Creditors Meeting of creditors and contributors called by liquidator to consider establishment of liquidation committee
2458 Final Meetings (legislation repealed 2017) Final Meeting of Creditors to receive Liquidators report and determine whether Liquidator should be released
2459 Release of Liquidator Notice of Release of Liquidator as the liquidation is completed
2460 Notice to Creditors Notice to creditors to prove debts or claims
2461 Dismissal of Winding Up Petition If the company settles with the creditor before the court case, or the judge decides that the company can repay a reasonable portion of the debt through a voluntary arrangement with the creditor, then the petition to wind up is dismissed
2463 Annual Meeting If the liquidataion takes more than a year, there can be meetings of company and creditors at each year's end
2465 Deemed Consent (Winding up by the Court) The Liquidator in a court winding up writes to creditors with a proposal. Provided they do not receive objections from 10% or more of creditors then the proposal will be deemed to be approved

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