(1)
This section applies where the administrator of a company thinks that—
(a)
the total amount which each secured creditor of the company is likely to receive has been paid to him or set aside for him ; and
(b)
a distribution is made to unsecured creditors of the company, if there are any.
(2)
The administrator may send to the Commission a notice that this section applies.
(3)
On receipt of a notice under subsection (2), the Commission shall register the notice.
(4)
After an administrator has sent a notice under subsection (2), he shall, as soon as is reasonably practicable—
(a)
file a copy of the notice with the Court ; and
(b)
send a copy of the notice to each creditor of whose claim and address he is aware.
(5)
On the registration of a notice under subsection (3) the—
(a)
appointment of an administrator in respect of the company ceases to have effect ; and
(b)
company shall be wound up as if a resolution for voluntary winding-up under section 620 of this Act were passed on the day on which the notice is registered.
(6)
The liquidator, for the purposes of the winding-up, shall be—
(a)
a person nominated by the creditors of the company in the prescribed manner and within the prescribed period ; or
(b)
the administrator, if no person is nominated under paragraph ( (7) In the application of this Chapter to a winding-up by virtue of this section—
(a)
section 520 of this Act shall not apply ;
(b)
this section applies as if the reference to the time of the passing of the resolution for voluntary winding-up were a reference to the beginning of the date of registration of the notice under subsection (3) ;
(c)
sections 523, 532, 533 and 534 shall not apply ;
(d)
subsection (5) (b) shall apply as if the reference to the time of the passing of the resolution for voluntary winding-up were a reference to the beginning of the date of registration of the notice under subsection (3) ; and
(e)
any creditors’ committee which is in existence immediately before the company ceases to be in administration shall continue in existence after that time as if appointed as a liquidation committee by the creditors at the creditors’ meeting for the purpose of the winding-up.