Property issues in administration

This topic deals with property related issues that arise in the course of the administration of a company. For more detailed guidance on the administration process generally, see: Administration—overview.

It is very common for a company in administration to have a property asset of some type, for example, a lease of the business premises from which the company operates, or a freehold property such as a shopping centre which represents the main asset of the company and which has been secured in favour of a lender.

The administrator will commonly seek to use the property in some way during the course of the administration to achieve the purpose of the administration set out in paragraph 3 of Schedule B1 to the Insolvency Act 1986 (IA 1986). For example, the administrator may trade the business from the property or seek to sell the property as part of a sale of the business and assets of the company as a going concern.

When are you are acting for an administrator selling a business which has a property asset, it is important to involve real estate

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Restructuring & Insolvency News

When ‘special’ meets scrutiny—administrator choice (Eisenberg and another v JNFX Ltd)

Restructuring & Insolvency analysis: In this important judgment on the special administration regime for payment and e-money institutions, the court granted a special administrator order over JNFX Ltd (JNFX), a Financial Conduct Authority (FCA)-regulated payment institution that had failed to satisfy a substantial judgment debt. Crucially, the court rejected the administrators proposed by the company’s directors (supported by the FCA) and instead appointed the creditors’ preferred nominees, emphasising that creditor wishes remain highly influential even in the regulated sector variant of administration. The decision also confirms that insolvency alone (Ground A) is sufficient to justify a special administration order and that creditors may be permitted to participate in and challenge the appointment process. For practitioners, the case underscores the need for proactive engagement with creditors, careful conflict management when nominating administrators, and an understanding that the court will prioritise the statutory objectives—particularly the return of safeguarded customer funds, while remaining alert to potential concerns about independence or governance in the pre-appointment phase. Written by Ben Rutledge, managing associate and solicitor advocate at Keidan Harrison LLP.

New Practice Note: Insurance alternatives to litigation funding

The LexisNexis Restructuring & Insolvency practical guidance team, in partnership with Mark Beaumont of Annecto Legal Ltd, has published a new Practice Note—‘Insurance alternatives to litigation funding’. This Practice Note discusses insurance alternatives to litigation funding, more particularly work-in-progress insurance and creditor funding with the benefit of capital protection insurance.

New Practice Note: Special resolution regime for central counterparties

The LexisNexis Restructuring & Insolvency practical guidance team, in partnership with Kelesi Blundell, Dr Ioannis Asimakopoulos and Eleanor Wagg of Herbert Smith Freehills Kramer LLP, has published a new Practice Note—‘Special resolution regime for central counterparties’. This Practice Note looks at the special resolution regime created for central counterparties by the Financial Services and Markets Act 2023. In particular, it considers the eight stabilisation options, the Bank of England’s (BoE) powers pre-resolution, the BoE’s power to appoint a temporary manager, the special resolution objectives, the conditions for exercise of the stabilisation power, valuations, share transfer instruments, property transfer instruments and resolution instruments.

New Practice Notes: Part 26A restructuring plan deal debriefs

The LexisNexis Restructuring & Insolvency practical guidance team has published two new Practice Notes—‘Part 26A restructuring plan deal debrief—Argo Blockchain plc’ and ‘Part 26A restructuring plan deal debrief—Fossil (UK) Global Services Ltd’. These Practice Notes look at the key terms of the Part 26A restructuring plans proposed in 2025 by Argo Blockchain plc and Fossil (UK) Global Services Ltd respectively.

View Restructuring & Insolvency by content type :

News