Lehman Brothers (PTG) Ltd Extension of Administration Period: Key Legal Principles and Considerations

Citation: [2023] EWHC 3084 (Ch)
Judgment on


In the case of Lehman Brothers (PTG) Ltd (in administration), Re: [2023] EWHC 3084 (Ch), the legal issues under review concerned the extension of an administration period under the Insolvency Act 1986. The Honourable Mr. Justice Hildyard provided clear guidance regarding the principles for extending an administration and the pertinent considerations for the court when deciding such matters.

Key Facts

The case presented involved an application for the extension of the administration period of Lehman Brothers (PTG) Ltd (“PTG”), a company within the Lehman Group, by a further two years to 30 November 2025. PTG has been in administration since the financial crisis of 2008 and the case highlighted the exceptional complexity of the administrations within the Lehman Group.

The legal principles applied in this case revolve around the statutory provisions for the extension of the administration period as set out in Schedule B1 para.76(2)(a) of the Insolvency Act 1986. Justice Hildyard systematically addressed several key questions in determining whether to grant the extension:

  1. Duration and Need for Extension: The first question involved understanding why the administration had not been concluded (para. 8). Given PTG’s history and the complexities involved, the continuation of the administration was justified.

  2. Suitability of Alternative Regimes: Justice Hildyard assessed whether there exists an insolvency regime more suitable than administration for PTG (para. 13).

  3. Probability of Achieving Administration Purposes: The third point questioned whether the extension would likely meet the administration’s objectives, particularly since PTG was already in distribution mode (para. 14).

  4. Appropriate Duration of Extension: The appropriate length of any extension granted was deliberated, with Justice Hildyard recognizing the history of underestimating needed time, but finding the requested two-year extension to be justified (para. 15).

  5. Cost-Benefit Analysis: There was a critical appraisal of whether the costs of extending the administration outweighed the potential benefits, highlighting the responsibility to address the ongoing costs against anticipated recoveries (para. 18).

  6. Financial Recoveries and Distributions: PTG anticipated recoveries from several sources, and Justice Hildyard found that continuing the administration would likely facilitate further recoveries (para. 10).

  7. Notification and Objections: The court noted that sufficient notice had been provided, and no objections were received from creditors (para. 16).


The principle outcome of the case was the granting of the extension for PTG’s administration period until 30 November 2025. This decision was based on the likelihood of further recoveries, absence of any preferable alternative regime to administration, and the prolonged complexity of the insolvency process.

Justice Hildyard emphasized the necessity for ongoing evaluation of the administration’s cost-effectiveness. In particular, administrators were reminded of the importance of continuously balancing the costs of extension with the benefits to creditors and potentially adjusting the insolvency strategy if circumstances change (para. 18 - 19).


In conclusion, the case reaffirmed the broad discretion of the court to extend the period of administration under the Insolvency Act 1986 while emphasizing the importance of careful scrutiny of such extensions. Critical factors for consideration include the complexity of the insolvency, the likelihood of achieving intended goals, the cost-benefit balance, and the practicability of alternative regimes. This judgment serves as a guide for insolvency practitioners and legal professionals in future cases involving prolonged administrations.

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