Okay Sorry, I got it wrong. The process is broken down a little more here http://www.inhouselawyer.co.uk/index.ph ... our-rights
The administrator must initially perform their functions with a view to achieving the first tier, which is to rescue the company as a going concern. Potential purchasers are often unwilling to buy the shares of a company in administration as this would involve them taking on the liabilities of the insolvent company. Consequently, in practice, this first limb is rarely achieved.
If it is not reasonably practicable to achieve the first limb, an administrator may perform their functions with a view to achieving the second purpose. That is, to get a better result for the company’s creditors as a whole than would be likely were the company being wound up without there being an administration first. This limb can often be achieved by the administrator selling the business as a going concern, where a higher purchase price is paid than if the assets were sold on a break-up basis, which often happens in a liquidation scenario.
BG is on the second purpose.
The administrator must initially perform their functions with a view to achieving the first tier, which is to rescue the company as a going concern. Potential purchasers are often unwilling to buy the shares of a company in administration as this would involve them taking on the liabilities of the insolvent company. Consequently, in practice, this first limb is rarely achieved.
If it is not reasonably practicable to achieve the first limb, an administrator may perform their functions with a view to achieving the second purpose. That is, to get a better result for the company’s creditors as a whole than would be likely were the company being wound up without there being an administration first. This limb can often be achieved by the administrator selling the business as a going concern, where a higher purchase price is paid than if the assets were sold on a break-up basis, which often happens in a liquidation scenario.
BG is on the second purpose.