Re TransBus International Ltd
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| Re Transbus International Ltd | |
|---|---|
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| Court | High Court of Justice |
| Citations | [2004] EWHC 932, Ch, [2004] 2 All ER 911 |
| Keywords | |
| Insolvency | |
Re Transbus International Ltd [2004] EWHC 932 (Ch) is a UK insolvency law case, concerning the discretion of an administrator to trade with a company's assets.
Facts
The administrators of Transbus International Ltd applied to the court under IA 1986 Sch B1, para 63 for directions about whether or not they could effect a sale of the business.
Judgment
Lawrence Collins J held the administrator can act without creditor approval or court approval, if he thinks it in the best interest of creditors.
14. There will be many cases where the administrators are justified in not laying any proposals before a meeting of creditors. This is so where they conclude that the unsecured creditors are either likely to be paid in full, or to receive no payment, or where neither of the first two objectives for the administration can be achieved: see para.52 of the Schedule. If, in such administrations, administrators were prevented from acting without the direction of the court it would mean that they would have to seek the directions of the court before carrying out any function throughout the whole of the administration. The Enterprise Act 2002 reflects a conscious policy to reduce the involvement of the court in administrations, where possible.