Here, the Court considered whose consent was required to extend an administration under paragraph 76 of Schedule B1 to the Insolvency Act 1986; that is, was it current secured creditors only, or was it also secured creditors who had been paid off in full?

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Although the administrators had sought and obtained consent to the extension from the only relevant secured creditor, the issue arose as to whether the administrators should also have sought consent from other parties who had been secured creditors at the time of appointment of the administrators, but had subsequently been paid off. 

The Insolvency Service argued that if a creditor was classified as a 'secured creditor' at "the point of entry to the procedure", this classification would remain even if the creditor was then paid in full. 

However, the court rejected this contention and held that any creditor whose debt had been paid off was in fact no longer a creditor, citing the definition of "secured creditor" in section 248 Insolvency Act 1986 as a creditor who holds (present tense) security.