Insolvency administrator (administrador de insolvência)
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The administrador de insolvência is the professional appointed by the court to manage and sell the assets of an insolvent person or company and pay creditors from the proceeds.
When a court declares an , the debtor loses the power to manage and dispose of the assets in the . Those powers pass to the administrador de insolvência (CIRE article 81).
The administrator arranges the sale of the assets and prepares payment of the debts from the proceeds, with the cooperation and under the supervision of the creditors' committee, where one exists (CIRE article 55).
For real estate, the law says the is to be preferred, but the administrator may, giving reasons, choose another method allowed in enforcement proceedings or any other considered more suitable (CIRE article 164). That is why insolvency properties appear on e-Leilões, with private auction houses and in .
Example
Illustrative example: a construction company is declared insolvent and owns three shops. The insolvency administrator puts them up for electronic auction with a base value of €60,000 each. The bank holding a over the shops is heard on the method and told the base value.
In practice, at an auction
In insolvency sales, the person who answers questions, arranges viewings and formalises the sale is the insolvency administrator or the auction house they have engaged. Conditions (deposit, auction house commission, payment deadlines, form of title) vary more than in enforcement sales and are set out in the terms of each sale: read them before bidding. A creditor with security over the property may offer to buy at a higher price than planned, which can change the outcome. Check occupancy and who signs the sale with the administrator.