189. Appointment of Administrator by a secured creditor

Subject to subsection (3), a secured creditor who holds an encumbrance over the whole, or substantially the whole, of a company’s property and undertaking, or a receiver appointed by that person, may appoint an administrator where the encumbrance has become, and is still, enforceable.

An appointment under subsection (1) shall be in writing.

A secured creditor who appoints an administrator under subsection (1) shall give written notice of such appointment to the company as soon as practicable and in any event before the close of the next working day after appointment.

The secured creditor or receiver may not appoint an administrator if the company is already in liquidation.