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Fire sale: keeping your cool during an administration

What companies and creditors should know about an administration sale | 7 min read

When an administrator is unable to rescue a company, the assets of the company can be sold, and proceeds distributed to its creditors. The sale can be organised in one of two ways – a pre-pack sale where the terms of the sale are negotiated before the company is put into administration with the administrator signing shortly after appointment or a later administration sale on terms negotiated in the currency of administration, often after a period of post appointment trading. With rising interest rates making loans more expensive to repay and administrations more likely, we look at the key issues for companies and creditors in an administration sale. 

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Further reading

Companies in distress: directors’ duties and helpful tools
Restructuring and insolvency law in United Kingdom

A version of this article was published by Professional Adviser on 20 April 2023. 

Expertise

Corporate