Administration notices to creditors disallowed

United Kingdom

In the recent case of Re Sporting Options Plc [2004] All ER (D) 30 the court usefully answered a frequently asked question: Can administrators send statutory notices to creditors by e-mail? Mann J decided that e-mail was not a sufficiently reliable means of communication. This was the case even though Sporting Options Plc's creditors had traded with the company over the internet. Mann J did, however, allow the administrators to post a hard copy short document to each creditor directing them to a website where the substantive information could be found.

Following this case it seems unlikely that there will be circumstances in which the court will allow administrators to notify creditors solely by e-mail. But it is now possible to apply to court to be allowed to send a short notice to creditors containing details of a website where the main information is located. Such an application would entail a certain amount of cost. It will therefore need to be a fairly sizeable administration where the reduction in printing and posting costs outweigh the cost of the application to court.

For further information please contact Sophie Elboz on +44(0) 20 7367 2958 or at [email protected] or Inga West on +44(0) 20 7367 3478 or at [email protected]