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 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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