The quick answer
This is where a company gives Notice Of Intention to appoint an Administrator and go into administration. The filing of the Notice creates a moratorium protecting the company (or a partnership). This can be very useful to give some short term breathing space.
In more detail
A notice of intention to appoint (“NOI”) is signed and sworn by a company director. There must be a debenture in place as effectively the NOI is giving the debenture holder notice of the intention to appoint an Administrator. In that period of notice, which must last five clear business or working days, the debenture holder can decide to appoint their own Administrator.
An NOI can be used to create a Moratorium – effectively this means that no creditor can take any action. It can be used to stop the imminent distraint by a bailiff or recovery of secured assets.
The moratorium lasts up to 14 days (including weekends) and a second and third can be filed if more time is needed and that is properly justified.
