The key to a successful Administration is a better return to creditors and lenders. At the start, you will need to go through your company’s affairs with an insolvency specialist – such as Company Insolvency Advice – to look at all the issues you have and discuss the alternative methods of solving them.
Assuming Administration is the best route, then a court application is made and immediate protection is granted. This stops any legal action against your company and lets you work with the proposed Administrator to find the best route forward.
A Company Administration must achieve one of the following:
- Rescue the company as a going concern.
- Achieve a better result than the company being wound-up.
- To realise the value of the property to make a distribution to one or more secured, or preferential creditors.
We go through the alternatives and work together to get the right one.
Once the Administration Order has been made, proposals need to be generated and the Administrator’s proposals are sent to all of the company’s creditors. When the proposals have been approved, the administration will run its course.
This could include:
- Sale of some or all of the assets.
- Disposal or surrender of onerous liabilities and leases.
- Transfer of ongoing contracts.
- Business and operational transfers to a new company.