How Administration ends
HOW ADMINISTRATION ENDS
Administration usually only lasts for one year but can be extended with the creditors agreement or the agreement of the Court.
These are the various way an Administration can be brought to a formal close.
These are, in the most likely order first, as follows:
Exit by going into Creditors Voluntary Liquidation. This usually happens where a dividend is to be paid to unsecured creditors above the prescribed part. The prescribed part is the amount set aside in law for unsecured creditors when there is a debenture.
Exit by dissolution. This means the company will be struck off.
Exit into a Company Voluntary Arrangement or Scheme of Arrangement.
A return of the company to the directors if it is now solvent. This is rare.
On closing an Administration, the Administrator must issue a full report to all parties (including all creditors) explaining what they have done, what assets have been realised and the fees charged. This closing report will also be filed at Companies House
- Most Administrations close by going into Liquidation or dissolution.
- A closing report must be filed by the Administrator at Companies House.
David Kirk did exactly what he said he would. I’d be lost without Administration. Without David, we would have gone bankrupt by now. Really good