Dissolution: practical advice to mortgagees on asset realisation

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.

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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.

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About the author:

Neeta started her legal career at Allen & Overy in 2008 in the midst of the global financial crisis and the collapse of Lehmans where she gained most of her paralegal experience.

Neeta also did a short stint in litigation at the Revenue and Customs Prosecutions Office in 2006. Neeta graduated with a 2:1 honours degree from University of London, Queen Mary College and went on to obtain a distinction from the College of Law in the Legal Practice. She has been working at Lexis Nexis since April 2013.