Sale and purchase of assets

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This Overview provides a summary of the issues and considerations which may arise on a sale and purchase of assets in an administration. It also provides links to materials in this subtopic which provide further information, including Practice Notes, Checklists and a list of additional Precedents is provided at the end.

The Administrator's role

The administrator has a general duty to act in the best interests of creditors as a whole, and this applies especially in their duty to get a good deal when entering into a sale of a company's business and assets, either as part of a pre-pack sale or during a trading administration.

The administrator must set out their proposals for achieving the purpose of administration, and if this includes a sale of the business and/or the assets of the company, then this should be put to the company's creditors for approval. It is not always possible for an administrator to put their proposals for sale to the creditors in advance of a sale, particularly in the case of a pre-pack sale for example, so the administrator should make sure they are

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Latest Restructuring & Insolvency News

Restructuring & Insolvency weekly highlights—3 July 2025

This week's edition of Restructuring & Insolvency weekly highlights includes: an examination of a liquidator’s discretion to convert a members’ voluntary liquidation to a creditors’ voluntary liquidation (Noal SCSp v Novalpina Capital LLP), a discussion of the Supreme Court’s decision on undue influence in surety relationships in Waller Edwards v One Savings Bank Plc, plus a round-up of other news and cases for restructuring and insolvency professionals.

R3 responds to Insolvency Service's personal insolvency framework reform update

The Association for Business Recovery Professionals (R3) has responded to the Insolvency Service's first major update on the Personal Insolvency Framework Review since August 2023. The update proposes mandatory upfront debt advice, technology integration, and terminology reforms to reduce stigma. R3's Personal Insolvency Committee Chair, Nicky Fisher, welcomed the proposals but stressed that careful implementation is essential to maintain creditor confidence. The review seeks to modernise the insolvency framework to reflect current economic conditions while ensuring robust protections remain in place for both creditors and debtors.

Insolvency Service reports 11-year director ban for BBL fraud

The Insolvency Service has reported the disqualification of building contractor Tahir Haq from serving as a company director for 11 years, accompanied by mandated compensation payments totalling £58,963 (including interest and costs). Haq obtained a £50,000 bounce back loan (BBL) for Integral Maintenance Team Ltd by overstating his company's turnover by £200,000, despite the company being entitled to only around £3,000. The disqualification, effective from 1 July 2025, prohibits Haq from promoting, forming, or managing any company without prior court approval.

Disputed debt and conversion of members’ voluntary liquidation to creditors’ voluntary liquidation (Noal SCSp and others v Novalpina Capital LLP (in members voluntary liquidation) and others)

Restructuring & Insolvency analysis: This judgment confirms that, if a company in members’ voluntary liquidation (MVL) is unable to pay its debts in full together with interest at the official rate within the period stated in the directors’ declaration made under section 89 of the Insolvency Act 1986 (IA 1986), then the company must be placed into creditors’ voluntary liquidation (CVL). There is no solvency test to justify varying this period. The company is already in liquidation and the liquidator has no discretion with regard to having to act under IA 1986, s 95 to convert the MVL to a CVL. Written by Andrew Mace, barrister at Tanfield Chambers.

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