108. Pre-administration costs

(1) Where the administrator of a Company has made a statement of pre-administration costs under Section 57(1)(k) (Administrator's statement of proposals) the creditors' committee may determine whether and to what extent the unpaid pre-administration costs set out in the statement are approved for payment.
(2) But if —
(a) there is no creditors' committee; or
(b) there is but it does not make the necessary determination; or
(c) it does do so but the administrator of the Company or other insolvency practitioner who has charged fees or incurred expenses as pre-administration costs considers the amount determined to be insufficient,
subsection (3) applies.
(3) When this subsection applies, determination of whether and to what extent the unpaid pre-administration costs are approved for payment shall be —
(a) by resolution of a creditors' meeting other than in a case falling in paragraph (b); or
(b) in a case where the administrator of the Company has made a statement under Section 61(6)(b) (Requirement for initial creditors' meeting) —
(i) by the approval of each secured creditor of the Company; or
(ii) if the administrator of the Company has made, or intends to make, a distribution to preferential creditors, by the approval of —
(aa) each secured creditor of the Company; and
(bb) preferential creditors whose debts amount to more than 50% of the preferential debts of the Company, disregarding debts of any creditor who does not respond to an invitation to give or withhold approval.
(4) The administrator of a Company must call a meeting of the creditors' committee or a creditors' meeting if so requested for the purposes of subsections (1) to (3) by another insolvency practitioner who has charged fees or incurred expenses as pre-administration costs; and the administrator of the Company must give notice of the meeting within twenty-eight (28) days of receipt of the request.
(5) If —
(a) there is no determination under subsection (1) or (3); or
(b) there is such a determination but the administrator of the Company or other insolvency practitioner who has charged fees or incurred expenses as pre-administration costs considers the amount determined to be insufficient,
the administrator of the Company (where the fees were charged or expenses incurred by him) or other insolvency practitioner (where the fees were charged or expenses incurred by that insolvency practitioner) may apply to the Court for a determination of whether and to what extent the unpaid pre-administration costs are approved for payment.
(6) Paragraph 5(4), (5) and (7) (Remuneration: recourse by administrator or liquidator to the Court) of Schedule 12 (Remuneration) apply to an application under subsection (5) as they do to an application under paragraph 5(1) (Remuneration: recourse by administrator or liquidator to the Court) of Schedule 12 (Remuneration) (references to the administrator of the Company being read as references to the insolvency practitioner who has charged fees or incurred expenses as pre-administration costs).
(7) Where the administrator of a Company fails to call a meeting of the creditors' committee or a creditors' meeting in accordance with subsection (4), the other insolvency practitioner may apply to the Court for an order requiring the administrator of the Company to do so.