Companies Act 2014 section 558ZV

Power to deal with charged property etc.

Section 558ZV enables a process adviser for an eligible company to apply to the court for authority to sell or deal with property that is subject to a security interest or hire-purchase agreement, where doing so would help the company survive as a going concern.

• The court may authorise a process adviser to dispose of property subject to a floating charge as if the charge did not exist, provided the disposal would likely facilitate the company's survival as a going concern
• Property subject to other types of security or goods held under hire-purchase agreements may also be disposed of by court order, but the court must impose conditions ensuring the secured creditor or owner receives the net proceeds (topped up to open market value if necessary)
• Where property subject to a floating charge is sold, the charge holder retains the same priority over any property that directly or indirectly represents the disposed property; where multiple securities apply, proceeds are distributed in order of priority
• A certified copy of any court order must be delivered to the Registrar within 7 days, and failure to do so without reasonable excuse is a criminal offence