Welcome to administration.co.uk
Administration is a procedure whereby a licensed insolvency practitioner is formally appointed administrator by the court over a company (or partnership) with a view to achieving one or more of three statutory objectives:
- Rescuing the company as a going concern.
- Getting a better result for the company’s creditors than they would have received had the company entered liquidation first.
- Realising the company’s assets in order to pay a secured or preferential creditor.
An Administration Order can be applied for by the directors (with the consent of the chosen insolvency practitioner) and be in place in a matter of hours and it will protect the company from any creditors or legal action. We help you do all the paperwork for this and can act as the administrators as we are licensed insolvency practitioners.
Typically administration is used to keep a company trading for a short period whilst an attempt is made to sell all or part of it to new owners. The new owners may in fact be the old owners or the old management of a business.
The administrator of a company is usually chosen by the directors. However they can also be selected by the company’s bank (if the bank holds a debenture over the company) from what the bank call one of their panel insolvency practitioners. The banks only tend to do this for larger levels of debt.
In the period of administration (which can last from one day up to a year) we usually trade the business and will keep on a number of the key staff if not all of them and the directors to help keep the business going. However in some cases we may sell the business right away to a new owner in a pre-packaged sale or just be helping close down the business on a more organised basis.
If you have any questions about administration or insolvency not answered by this site please do get in touch with us.