Sale and purchase of assets

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 agreement to sell a company's business and assets, either as part of a pre-pack sale or as a sale during a trading administration.

The administrator must set out their proposals for achieving the purpose of administration, and if this includes a sale of either the business or the assets of the company, or both, 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 clear that they are getting a good deal for the creditors, and can demonstrate this by way of a paper trail later if required. If they are concerned they may wish to seek advance directions from the court on any potential sale. See