170. Power to dispose of charged property
(1) Where, on an application by the administrative receiver, the Court is satisfied that the disposal (with or without other assets) of any relevant property which is subject to a security would be likely to promote a more advantageous realisation of the Company's assets than would otherwise be effected, the Court may by order authorise the administrative receiver to dispose of the property as if it were not subject to the security.
(2) Subsection (1) does not apply to a security held by the person by whom the administrative receiver was appointed, or any security which has priority over that security interest.
(3) It shall be a condition of an order under this Section that —
(a) the net proceeds of the disposal; and
(b) such sum as may be required to make good the deficiency between the net proceeds of the disposal and the net amount which would be realised on a sale of the property in the open market by a willing vendor,
shall be applied towards discharging the sums secured by the security.
(4) Where a condition imposed in pursuance of subsection (3) relates to two or more securities, that condition shall require the net proceeds of the disposal and, where subsection (3)(b) applies, the sums mentioned in that subsection to be applied towards discharging the sums secured by those securities in the order of their priorities.
(5) If an order is made under this Section, the administrative receiver shall immediately give notice of it to the person who is the secured creditor if such person has not been a party to the proceedings before the Court.
(6) The administrative receiver shall send to the Registrar a copy of the order within fourteen (14) days of it being made.
(7) If the administrative receiver fails to comply with subsection (6) without reasonable excuse, he commits a contravention and is liable to a fine at the relevant level set out in the Fines Schedule.
(8) In this Section, "relevant property" in relation to the administrative receiver, means the property of which he is or, but for the appointment of some other person as the receiver of part of the Company's property, would be the receiver.