In 2020, PSL2021 Realisations Ltd (formerly Peacocks Stores Ltd) (the Company) entered administration, and joint administrators were appointed in respect of the Company, which had a mix of secured and unsecured creditors. The administration was extended firstly by creditor consent and then via two subsequent court orders. In 2024, the administrators sought a further 12-month extension by order of the court, which was heard by the Scottish Outer House of Session. They cited the need for the extension was to complete the transfer of assets, deal with property leases, finalise accounts, investigate directors' conduct, and distribute the prescribed part to unsecured creditors.  

The Outer House Court of Session granted the administrators' application, extending the administration period until 16 November 2025. However, the court cautioned that further extensions should not be assumed if the work was not completed within the extended period.

Although this is a Scottish law decision, Lord Braid's opinion has prompted some food for thought on the approach the English courts may take in the near future. At paragraph 19 of the judgment, Lord Braid expressed that all creditors should be informed of the application and given an opportunity to object, even including unsecured creditors who are unlikely to receive dividends and are therefore “out of the money”. This has raised concerns whether English judges will take a similar view.

Until now, the English courts have not required administrators to notify or seek the views of creditors who have no economic interest in the outcome of the administration and to give them the opportunity to object to the proposed extension, since they are unaffected either way. This will inevitably increase the administrators' expenses and reduce the ‘pot’ available for those creditors who do stand to receive a distribution. This is a Scottish law decision which is not binding on English courts and so, for now, it is business as usual when dealing with administration extension applications before the English courts. Watch this space though to see how this area develops and if Lord Braid’s opinion will have an impact in the English courts later down the line.