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 ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your Business

Fidelius takes stake in HNW specialist

Fidelius takes stake in HNW specialist

Follows February rebrand

Jen Frost
clock 02 May 2025 • 2 min read
Are advice business data silos a necessary evil?

Are advice business data silos a necessary evil?

‘Like them or not, data silos are here to stay’

Robin Bevan
clock 29 April 2025 • 4 min read
Editor's view: Plenty to celebrate about the next generation of advisers

Editor's view: Plenty to celebrate about the next generation of advisers

The editor's Friday Night Takeaway from 25 April

Jen Frost
clock 25 April 2025 • 4 min read