- Sale of fixed charge assets by administrators (Re Sky Building Ltd v Revenue and Customs Commissioners)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Restructuring & Insolvency analysis: This case concerned the status of purchasers of ‘off plan’ units in redevelopment schemes which fail and go into administration. The court had to consider a proposal by the administrators to sell the property free from their proprietary interests. This appears to be the first reported case where the investors actively opposed the administrators’ proposals. The court dismissed the administrators’ application and gave valuable guidance on the factors to take into account in deciding whether to order the sale of charged property, including the importance of proper valuation evidence and the significance of opposition by the creditors for whose benefit the application is said to be made. Written by Steven Fennell, barrister, at Exchange Chambers.
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