Suitable for: insolvent companies, those facing serious debt recovery or threats of legal action.
An administration facilitates the reorganisation of the company’s affairs or the realisation of its assets to resolve outstanding debts.
You will be required to appoint an administrator; our experienced insolvency practitioner can act on your behalf and take control of the company’s affairs.
The aim of an administration is to rescue your company so it can continue trading. It might not be possible for your company to continue trading, in which case, your administrator must reach a solution which has a better outcome than if the company went into liquidation. Otherwise, your administrator must realise the company’s property and distribute the assets to the company’s secured or preferential creditors.
Control of the company will be given back to the director if the administration process results in your company being rescued. Alternatively, the net proceeds of your company’s assets are distributed to your company’s creditors either by the administrator or a subsequently appointed liquidator.
– An automatic moratorium prevents creditors from taking any recovery action against the company during the administration, without the consent of the court or administrator
– The administrator guarantees payment for employees and any transactions undertaken by the company
– Administrations are used to rescue the business rather than close it
– Directors may be able to regain control of the business after the administration
– The administrator will approve all operational decisions and the director(s) will lose control of the company
– By law, the company must advertise it is under administration when trading
– The administrator might decide that the business should be closed or sold which could put jobs at risk