You can buy assets from an insolvent company (a company that is in a formal insolvency procedure, either administration or liquidation), but the process is slightly different to simply acquiring the business and assets of a solvent trading company.
A prospective buyer should be aware of the structures that could apply to such an acquisition, the key risks that are associated with the acquisition and the compliance issues that need to be overcome before proceeding with the acquisition of business and assets from an insolvent company.
These considerations will vary depending upon how the business and assets of the insolvent company are being sold by the administrator / liquidator, but in all situations care should be given as to the title of the selling company to the assets, the limited assurances that will be given about the business and assets from the company, administrator or liquidator, and the price that is payable for the assets.
If you are in discussions to buy assets from an insolvent company, or your company is about to go insolvent and you are considering selling its business and assets, advice should be sought from either a solicitor or an insolvency practitioner. Edward Beedham specialises in the legal and procedural aspects of corporate insolvency, including business acquisitions and sales. If you require advice on corporate insolvency, please contact Edward Beedham at edward.beedham@herrington-carmichael.com or on 01276 686 222.
Solicitor, Corporate and Commercial
t: 01276 854666
e: edward.beedham@herrington-carmichael.com
Latest Articles
PODCASTS
The Legal Room UK Podcast features a diverse range of specialists offering expertise on a variety of topics.
You can Subscribe on whatever podcast platform you use.
Top Legal Insights
Material Breach of Contract
What is a ‘material’ breach of contract by a party to a commercial contract? This is a critical issue regularly considered by the courts. What constitutes a material breach and what are the remedies?
Commercial Lease: The Financial impact on Landlord and Tenant
Coronavirus (COVID-19) and the restrictions now in place to control its spread, are having a significant effect on many business sectors.
Divorce in Lockdown: Can I get some discreet legal advice?
We have spoken to clients who are unfortunately experiencing some family issues, and would like to obtain expert legal advice, yet don’t know how…
Land & Property Dispute
Restrictive Covenants – The Price of Modification
Having identified that your land is burdened by a restrictive covenant and for the purposes of this article the covenant in question will be that only one residential building can be erected on the land. What do you do next?
Wills, Trusts and Probate
Why is having a will so important?
It is entirely up to you if and when you want to create a Will, but it is important to be aware of the consequences of not having a Will.
Award winning legal advice
We are solicitors in Camberley, Wokingham and London. In 2019, Herrington Carmichael won ‘Property Law Firm of the Year’ at the Thames Valley Business Magazines Property Awards, ‘Best Medium Sized Business’ at the Surrey Heath Business Awards and we were named IR Global’s ‘Member of the Year’. We are ranked as a Leading Firm 2022 by Legal 500 and Alistair McArthur is ranked in Chambers 2021.
Camberley
Building 2 Watchmoor Park, Riverside Way, Camberley, Surrey GU15 3YL
+44 (0)1276 686 222
Ascot (Appointment only)
102, Berkshire House, 39-51 High Street, Ascot, Berkshire SL5 7HY
+44 (0)1344 623388
London (Appointment only)
60 St Martins Lane, Covent Garden, London WC2N 4JS
+44 (0)203 326 0317
Wokingham (Appointment only)
4 The Courtyard, Denmark Street, Wokingham, Berkshire RG40 2AZ
+44 (0)118 977 4045
