Dissolution: practical advice to mortgagees on asset realisation

In this article, James Williams and David Gray at Eversheds look at Dissolution: practical advice to mortgagees on asset realisation. The key points arising from the article are as follows:

  • The recent case of Re Fivestar Properties Ltd [2015] EWHC 2782 (Ch), [2015] All ER (D) 76 (Oct) highlighted an instance where the company’s administrators filed a dissolution notice despite the company continuing to own a freehold asset with substantial value. This is just one example of how a secured creditor may find itself having to realise a valuable asset following a formal insolvency process and subsequent dissolution.
  • ––If a lender identifies an asset of value, the first question it will ask is how best to realise that asset. The second will be how much that method will cost. The next steps will depend on whether the asset has been disclaimed by the Crown and whether the disclaimed asset is freehold or leasehold.
  • Without an insolvency practitioner in place, the active over the passive approach is to be preferred in relation to dissolved companies. Given that each realisation process in dissolution is lawyer-led, this can be a good opportunity to gain a client’s respect and be seen to offer cost-effective problem-solving without ‘over-lawyering’ the issue.

Click here to download the article.

CRI will be sharing two articles per month on-line only. They will be available on the Randi blog one month after publication in LexisLibrary.

Filed Under: CRI

Relevant Articles
Area of Interest