The Federal Court of Justice (BGH, 22 April 2010, IX ZR 208/08) ruled that an insolvency administrator – when realising movable assets which are subject to a security interest – has no duty to notify the secured creditor a second time before the administrator may sell the assets to a third party for a price better than the offer previously made by the secured creditor.
When realising movable assets, the insolvency administrator is not obliged to start a competition between an interested purchaser and the secured creditor. Following the notification of an envisaged sale, secured creditors should therefore carefully consider the option to offer the takeover of the assets below value.
[Read More]Posted by Peter Jark and Simon Weber on Thursday 12 Aug 2010