Fire sale: Keeping your cool during an administration

Claims for unsecured debts rank equally among each other

clock • 4 min read

Peter Wiltshire and Martin Brown outline what companies and creditors need to know about an administration sale

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; 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, it is vital to be ...

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