About Us | Contact Us
Telephone 03300 249 711
(Local Rate)
Covering England and Wales
What actually happens?

What actually happens?


Either

The directors instruct an IP of their own choosing to help place the company into administration

The administrators then take control.

Or;

The debenture holder (usually a bank) forces the company into administration and appoints an IP of their choosing to become administrator.

The administrators then take control.


Administration can be very fast. Usually after meeting a licensed insolvency practitioner like us, a solicitor is entrusted to apply for an Administration Order at court. In the meantime, if necessary, a moratorium is created which protects the business instantly.

Administration gives a business up to eight weeks to come up with a plan to present to creditors (its suppliers, the bank, HM Revenue and Customs and anyone else owed money). By the time it presents that plan to creditors the business may have in fact already been sold to a new owner, the existing management or just carried on. In that period the company will be run by the administrator who is a licensed insolvency practitioner.

Once the company is in administration the administrators then take control of the company and its affairs.  The directors lose their powers of control.

The administrator does all sorts of things in those first few weeks including; talking to all the employees and explaining what is happening, contacting suppliers on the terms for future deliveries of goods, liaising with landlords, negotiating with possible buyers of the business and registering the claims of creditor’s owed money.

If trading is to be carried on the administrator will usually fund it and make sure the business can continue to trade and pay suppliers and wages on time.

The IP will also instruct professional agents to value and sell the company’s assets and business.



David Kirk ACA FABRP

David Kirk

David Kirk is a Chartered Accountant and Licensed Insolvency Practitioner.
Read More

DOWNLOAD GUIDE
Business Renewal
“You made a very difficult time much easier for us.”
R Johns
Business Rescue
"David Kirk helped us with an Administration to rescue the business. He did exactly what he said he would do. It has worked out very well."
Chris Pratt of Elecsis Ltd
Business Renewal
"It was a very difficult decision to make to go into Administration but now I am so glad we did it. David and his team were great thank you."
Jacci Dellaway of Baylift Services Ltd
Business Rescue
“At the initial meeting you told us the good and bad things that can happen and were honest and told us to watch out for. No one else had done that.”
J White
Business Recovery
"We were cornered and thought it was the end of the business after 20 years but he got us out of it."
Lynne Firman of Just Beds Ltd