Rescue Your Company

Administration is a formal insolvency process that puts a company under the control of an external administrator to see if the company can be rescued and if the owners can turn things around. Alternatively a pre-pack sale can often be arranged if it is the best outcome for all parties. Administrators can be appointed by directors, shareholders or even floating charge holders and other creditors. The administrator’s job is to protect their interests and if the business can’t be saved, will close it and look to sell company assets to obtain the best value for stakeholders.

Process of company administration

Company administration is a formal insolvency process designed to rescue viable elements of a struggling business, or else increase returns for outstanding creditors prior to it being dissolved. An insolvency practitioner will be appointed as part of the process, and they will assume control of the company whilst it remains in administration.

Advantages of company administration

Any legal actions being taken by creditors are immediately stayed, which means your company would be protected from the possibility of compulsory liquidation or any other negative legal action during the administration. This is done by way of a moratorium.

Puts the company in the hands of a licensed insolvency practitioner who will assume control for running the business while it is administration. This ensures that all actions taken during administration are carried out with the interest of the company's creditors in mind.

Keeps the financial position of the creditors from worsening.

The administrator is given time to communicate a clear picture of the company's finances to its creditors and outline the ways in which the administrator intends to conduct the administration and how the administrator intends to realise funds for creditors.

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