Further clarity on exit from new-style administration

Two recent cases have confirmed that for companies in "new- style" (i.e. post-15 September 2003) administration, if the administrators make distributions to creditors in the course of the administration, and no assets remain which permit further distributions, the company should be moved from administration directly to dissolution, and there is no need for an intervening liquidation.

Two recent cases, Re GHE Realisations Limited (Companies Court, 4 November 2005) and Re Preston & Duckworth Ltd (in liquidation) (High Court, 7 October 2005) have recently given guidance on the provisions on exit from a "new-style" administration. Schedule B1 to the Insolvency Act 1986 (as amended by the Enterprise Act 2002) sets out a variety of ways in which a company can leave administration, but their interpretation has proved problematic.