The administrator and charged property
Produced in partnership with Tom Shepherd of 4 New Square

The following Restructuring & Insolvency practice note produced in partnership with Tom Shepherd of 4 New Square provides comprehensive and up to date legal information covering:

  • The administrator and charged property
  • Coronavirus (COVID-19)
  • The moratorium
  • What is security over property for the purposes of the moratorium?
  • The extent to which the administrator can deal with property subject to a charge
  • Floating charge assets
  • Fixed charge assets
  • 'Taking steps' in relation to the enforcement of security by creditors
  • Retention of Title (ROT)
  • The application to court

The administrator and charged property

The success of an administration will often depend on the value of the assets available to the company and the administrator's ability to deal with these assets freely to achieve the best possible outcome for creditors as a whole. The administrator is given wide-ranging powers to deal with property, including property subject to various types of security.

One of the main advantages of administration is the protection afforded by the moratorium over enforcement action by creditors, which allows the administrator to proceed unimpeded by the pressures the company may have faced before administration. The administrator may wish to dispose of or otherwise use charged property in order to achieve one of the purposes of the administration, but conversely the creditor may wish to enforce its security and recover its entitlement from a company it considers to be at risk. The needs of the two have to be balanced.

This note will discuss:

  1. the interim and full moratorium, in brief

  2. the rights of secured creditors and what is considered to be security, and

  3. the extent to which administrators can deal with secured property

Coronavirus (COVID-19)

This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and processes as a result of the Coronavirus (COVID-19) pandemic, including the Temporary Insolvency Practice Direction 2020. For further information, see Practice

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