Buying assets of company in administration

[matuk]

I was working with a company who ran up a large bill with me (and others) and subsequently went into administration. I have approached the liquidators to acquire the assets of the company. I understand the business and feel I'm well positioned to take on some of the profitable parts of the business as a means to recoup my original losses.

Long story short, my offer has been accepted but there is some uncertainty hopefully someone can advise -

The company was structured with a group holding company with subsidiary companies, and that holding company was the 100% owner of the other sub companies. The administrator has not put all the companies into administration so some of the sub-companies will continue to exist after the sale of assets.

The IP is wanting to sell me all the assets of the holding company which they believe includes the assets of the subsidiaries. But I'm unsure of that with the other businesses still operating.

Also what happens to the subsidiaries if the holding company who has 100% stake in them goes into administration? Do I inherit any liability for them buy acquiring the assets?

Any insights into this greatly appreciated!

 

[Lisa Thomas]

So the assets being used by the subsidiaries are actually not owned by the subsidiaries, but the holding Company?

If not then I can't see what capacity the Administrator has to sell the assets owned by the subsidiaries...

If the subsidiaries' assets are all sold then it may likely force the Directors and Shareholders of the subsidiary Companies to place those companies into formal insolvency procedures, such as Liquidation as it may well force them to cease trading.

You are only acquiring assets, not shares so don't inherit any liabilities.

If in doubt you really should get a solicitor to advise and assist with the sale. I can recommend a specialist if you want to DM me.