Commentary

331 First purpose: rescuing the partnership as a going concern

BANKRUPTCY AND INSOLVENCY (INDIVIDUAL INSOLVENCY) vol 3(2)
| Commentary

331 First purpose: rescuing the partnership as a going concern

| Commentary

331 First purpose: rescuing the partnership as a going concern

The first purpose is rescuing the partnership as a going concern1. These cases will be rare (bearing in mind that the other threshold requirement is insolvency or default under a charge), but nevertheless the legislation requires the administrator to perform his functions with this purpose as his objective unless he thinks either2:

  1. 331.1

        that it is not reasonably practicable to achieve that objective, or

  2. 331.2

        that pursuing the second purpose as his objective would achieve a better result for the partnership’s creditors as a whole.

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