Extension of administration, explained
Twelve months is often not enough. Consent extensions add up to a further year; court extensions are unlimited. Here's how each route works, and which one to use.
Consent extension — step-by-step
- 1. Administrator prepares an updated progress report and a schedule of remaining tasks.
- 2. Written consent sought from every secured creditor.
- 3. Decision procedure convened for unsecured creditors (typically correspondence, 14-day window).
- 4. Once consent thresholds met, notice of extension filed at Companies House within 5 business days.
- 5. Notice served on all creditors and the court.
When court extensions are the only route
Court is required if: (a) a secured creditor withholds consent; (b) the case is already 24 months old and needs more time; (c) the administrator wants to preserve powers only exercisable within the administration (e.g. contract disclaimer under Sch B1 para 68). See our exit routes guide.
Frequently asked questions
What is the automatic end date?
12 months from the date of appointment (Sch B1 para 76(1)). Unless a valid extension is in place by that date, the administrator's appointment terminates automatically and any remaining assets fall back into the company (usually converted to a CVL immediately).
How is a consent extension obtained?
Under para 76(2)(b): consent from each secured creditor and from a majority in value of unsecured creditors participating in a decision procedure. Extension can be up to 12 months. Must be obtained before the 12-month expiry — retrospective consent is not valid.
How is a court extension obtained?
Application under para 76(2)(a) with a witness statement setting out the progress of the administration, remaining tasks, and reasons more time is needed. The court can extend for any length and any number of times. Costs of the application are usually paid from the estate.
Can consent extensions be repeated?
No — para 76(3) limits consent extensions to a single 12-month extension (i.e. maximum 24 months from appointment). Subsequent extensions must be by court order.
What must the extension notice contain?
Rule 3.54 IR 2016: administrator's name, extension end date, consenting creditors, and the current progress report. Notice is filed at Companies House within 5 business days of consent and served on all creditors.
When are court extensions typically needed?
Long tail assets (property, book debts), ongoing litigation, pension scheme deficits, cross-border realisations, or where a QFCH won't consent to a consent extension. Also common where the administrator wants to complete distributions in-office rather than move to CVL.
How much extra time do courts typically grant?
6 to 24 months per application in most cases. Very complex cases can see multiple 12-month extensions. Insurance run-off and pension cases have run to 5+ years.
What happens if the deadline is missed?
The administration ends automatically. If the administrator continues to act, that is a breach of duty. The company usually moves straight to CVL (with the same IP typically becoming liquidator) or dissolution.
Can creditors block an extension?
Yes — for consent extensions, a majority of unsecured creditors in value can vote against, and any secured creditor can refuse consent. The administrator's fallback is a court application, where creditors can appear and object.
Are extensions common?
Very. Insolvency Service data suggests roughly 40–50% of UK administrations are extended at least once. Complex cases average two to three extensions.