From 30 April 2021, administrators will only be able to complete a sale of a substantial part of a company’s business or assets to a connected party in a pre-pack sale with prior creditor approval or a report from an evaluator.
This alert considers the practical implications of the new regulations that apply to both pre-packs and post-packs completed within eight weeks of an administrator’s appointment, answering questions around timing, obligations and compliance, including:
- How does the administrator assess whether the evaluator has the relevant knowledge, experience and independence?
- What is a substantial disposal?
- What is the administrator’s liability for breach of the regulations?
- What if there is more than one sale?
- Who is a connected party?