- Court overrides creditor wishes and permits sale under para 71 of Schedule B1 to the Insolvency Act 1986 (Re Fox Street Village)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- The para 71 application
- The para 79 application
- Case details
Restructuring & Insolvency analysis: In this case, the court held that the administrators had acted appropriately. Although Judge Halliwell could well understand the frustration of the individual investors in the circumstances, there was no sufficient basis on which to remove the administrators or otherwise bring their appointment to an end. The court authorised the sale of the freehold property under para 71 of Schedule B1 to the Insolvency Act 1986 (IA 1986). Re Fox Street Village reinforces the high degree of discretion that is granted to insolvency practitioners (IPs) in the performance of their duties, and particularly in circumstances where they have relied on independent professional advice. The judge also gave some guidance of what might be done by the administrators to manage the potential for conflict. Written by Samuel Parsons, barrister at Guildhall Chambers.
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