Versions

 

100. Charged property

(1) The Court may by order enable the administrator of a Company or of a Deed of Company Arrangement to dispose of property which is subject to security (other than in the case of an administrator of a Company a floating charge) as if it were not subject to the security.
(2) An order under subsection (1) may be made only —
(a) on the application of the administrator of the Company or of a Deed of Company Arrangement; and
(b) where the Court thinks that disposal of the property would be likely to promote the purpose of administration or the Deed of Company Arrangement in respect of the Company.
(3) An order under this Section is subject to the condition that there be applied towards discharging the sums secured by the security —
(a) the net proceeds of disposal of the property; and
(b) any additional money required to be added to the net proceeds so as to produce the amount determined by the Court as the net amount which would be realised on a sale of the property at market value.
(4) If an order under this Section relates to more than one security, application of money under subsection (3) shall be in the order of the priorities of the securities.
(5) An administrator of a Company or of a Deed of Company Arrangement who makes a successful application for an order under this Section shall send a copy of the order to the Registrar before the end of the period of fourteen (14) days starting with the date of the order.
(6) An administrator of a Company or of a Deed of Company Arrangement commits a contravention and is liable to a fine at the relevant level set out in the Fines Schedule if he fails to comply with subsection (5) without reasonable excuse.