The aim of administration is to protect companies from their creditors whilst a restructuring plan is put into action. The process requires a licensed insolvency practitioner to act as the administrator.
The administrator must perform their duties with the objectives of:
1. Rescuing the company should be the primary objective; or
2. If a rescue is not reasonably practicable, achieving a better result for the company’s creditors would be to start the liquidation process (possibly by trading whilst seeking a buyer for the business as a going concern) ; or
3. Realising property in order to make a distribution to one or more secured of preferential creditors. This objective can only be pursued where it is not reasonably practicable to achieve either objective 1 or 2.
A company can be placed into administration by either a Floating Charge Holder (i.e. the bank if they have registered a charge at Companies House); the company director(s), or any creditor such as the court.
Once appointed, the Administrator will manage the company’s affairs, business and property, submitting regular reports to all parties.
If the directors initiate the process, then this may be done by means of a pre-packaged route. Please visit Pre-Pack Administration for further details.
To discuss the administration process or to speak directly to one of our licensed insolvency practitioners, please call Phil or another member of our team on 0333 014 3454. Alternatively, visit one of our local offices or email us: firstname.lastname@example.org
If your business is in trouble - if you are facing creditor debts, HMRC debts, or struggling to meet payroll, then you could be facing liquidation. Can your business be saved? Download our free guide, 'What To Do When You Are Facing Liquidation' now.