Glacier Energy Manufacturing Enters Administration: Employee and Supplier Creditor Rights

What administration means in practice

Administration is a formal insolvency process under the Insolvency Act 1986. Administrators take control of the company, with statutory duties to rescue the company as a going concern where possible, or to achieve a better result for creditors than a winding up. Trading may continue under the administrators while options are explored, including a sale of the business and assets.

Employee rights and the Redundancy Payments Service

Employees made redundant by an insolvent employer can claim certain statutory payments from the National Insurance Fund via the Insolvency Service Redundancy Payments Service on gov.uk. Claims can cover statutory redundancy pay, statutory notice pay, holiday pay and arrears of wages, up to weekly and overall caps set by the Department for Business and Trade. Claims are made online once the administrators have issued a case reference.

Section 188 collective consultation rules

Where an employer proposes to dismiss 20 or more employees at one establishment within a 90 day period, section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 requires collective consultation with representatives. ACAS publishes detailed guidance on the process. Failure to consult can give rise to a protective award claim before an employment tribunal.

Supplier and contractor creditor process

Unsecured trade creditors, including suppliers and contractors with unpaid invoices, must submit proof of debt to the administrators. The administrators will write to known creditors with proposals and an estimated outcome statement within eight weeks of the administration starting, as required by the Insolvency Rules 2016. Recovery for unsecured creditors in administrations is typically limited.

Timeline and next steps

The administration of a company under the standard procedure lasts twelve months from appointment, extendable by creditor consent or court order. Status updates are filed on the company's Companies House record. Employees and creditors should check the Companies House filing history for the company number SC817573 for the latest official documents.

Frequently asked questions

Will I receive my final wages and holiday pay?

Outstanding wages and accrued holiday pay are recoverable from the Insolvency Service Redundancy Payments Service up to weekly and overall caps. Amounts above the cap rank as preferential or ordinary unsecured claims in the administration.

What is the maximum statutory redundancy pay?

Statutory redundancy pay is calculated using the gov.uk redundancy calculator, with a weekly pay cap set by the Department for Business and Trade and a maximum of 20 years' service counted. Anything above the statutory amount, including contractual redundancy, ranks as an unsecured claim against the company.

Can I still claim statutory notice pay?

Yes. Statutory notice pay can be claimed from the Redundancy Payments Service if you were dismissed without proper notice. Notice entitlement is one week for each year of service up to a maximum of 12 weeks, under section 86 of the Employment Rights Act 1996.

My supplier invoice to the company is unpaid. What can I do?

Submit a proof of debt to the administrators using the standard form, with copies of your contract and invoices. The administrators will register the claim. Whether you recover anything depends on asset realisations and the priority of your claim under the Insolvency Act 1986.

Where do I find the administrator contact details?

Statutory notices are published on the company's Companies House filing history and in The Gazette. For Glacier Energy Manufacturing Limited the registered office is shown on Companies House as care of Teneo Financial Advisory Limited, 66 Hanover Street, Edinburgh.