Commentary

75.4 Third object: realising property in order to make a distribution to one or more secured or preferential creditors

BANKRUPTCY AND INSOLVENCY (CORPORATE INSOLVENCY) vol 3(3)

75.4 Third object: realising property in order to make a distribution to one or more secured or preferential creditors

75.4 Third object: realising property in order to make a distribution to one or more secured or preferential creditors

The third object, in part, reflects the fact that appointments of administrators, rather than administrative receivers, may, and must after the transitional provisions have expired, be made by the holders of qualifying floating charges1. It appears to be differentiated from the second object principally to introduce the qualification that the administrator may perform his functions with the third object only if2:

  1. 75.4.1

        he thinks that it is not reasonably practicable to achieve either the first object or the second object; and

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