Our Administration Specialists and licensed Insolvency Practitioners have years of experience in providing advice to save the business of an insolvent company. We have expertise in taking over the responsibility for the day-to-day running of the business. Our principal goal is to prevent any further financial deterioration to your business while a buyer is found.
What is an administration?
Administration is a procedure available to a company which is insolvent, or likely to become insolvent.
The company’s affairs are placed under the control of an Insolvency Practitioner who, with the protection of the court, must achieve one of the following objectives:
- Rescuing the company as a going concern;
- Achieving a better result for the company’s creditors as a whole than would be likely if the company was liquidated; Or, if neither of these objectives can be achieved:
- Realise the company’s property in order to make a distribution to secured or preferential creditors.
Once a company is in administration, creditors are prevented from taking any precipitous action without the permission of the court.
An Administrator can be approved by:
- A court order following an application by the company, its directors, or one or more creditors;
- Without a court order, by direct appointment by the company, its directors or a creditor with qualifying security.
An Administrator’s powers are extensive. They include the power to continue the company’s business whilst it is reorganised or marketed for sale, and the power to enter into an orderly wind down of the company’s business in order to maximise the return to creditors.