United Kingdom administrationfixed charge disposaloffice holder conduct

Re Capitol Films Ltd

[2010] EWHC 3223 (Ch), [2011] BPIR 334

JurisdictionUnited Kingdom

CourtHigh Court (Chancery Division)

Year2010

StatusPersuasive authority

Key Principle

An administrator's power under paragraph 71 of Schedule B1 to the Insolvency Act 1986 to apply to sell property subject to a fixed charge free of the charge is a significant interference with the chargeholder's rights and must be exercised properly; administrators who bring misconceived applications affecting secured creditors' rights risk personal costs and subordination of their own remuneration.

Area of Law

General

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