PART 4Social housing in England

CHAPTER 5Insolvency of registered providers of social housing

Housing administration

I197Objective 1: normal administration

1

Objective 1 is to—

a

rescue the registered provider as a going concern,

b

achieve a better result for the registered provider's creditors as a whole than would be likely if the registered provider were wound up (without first being in housing administration), or

c

realise property in order to make a distribution to one or more secured or preferential creditors.

2

The housing administrator must aim to achieve Objective 1(a) unless the housing administrator thinks—

a

that it is not reasonably practicable to achieve it, or

b

that Objective 1(b) would achieve a better result for the registered provider's creditors as a whole.

3

The housing administrator may aim to achieve Objective 1(c) only if—

a

the housing administrator thinks that it is not reasonably practicable to achieve Objective 1(a) or (b), and

b

the housing administrator does not unnecessarily harm the interests of the registered provider's creditors as a whole.

4

In pursuing Objective 1(a), (b) or (c) the housing administrator must act in the interests of the registered provider's creditors as a whole so far as consistent with that Objective.