Company administration is a formal procedure in which an insolvency practitioner is appointed to act as the administrator of an insolvent company with the goal of bringing about a recovery.
Any upfront quotes for Pre Pack Administrations by Insolvency Practitioners can be unreliable as your business will need to be professionally valued to establish the accurate purchase price.
If your company is being threatened by creditors (i.e. - a landlord, HMRC, your bank, credit card companies, etc.) and you fear that you could be taken to Court and put out of business, then continue reading to find out how an administration order could protect your company from liquidation and dissolution:
If you don't feel like reading the following guide and you have a specific question that needs answering, feel free to send us an email or call us on 0800 644 6080 for free advice.
Before we tell you more about the process you should consider the following points to make sure it is appropriate for your company to enter into administration:
To be absolutely sure that administration is the best route for your company speak with one of our insolvency practitioners today.
The following are the pros and cons of entering into company administration in the UK:
If the charge is held on a debenture that was granted before that date then they would be able to put your company into administrative receivership. Keep in mind that even if the directors of your company are the ones who initiate the administration it is possible for the bank, or another holder of a floating charge, to appoint their own administrator at their discretion.
If you’re concerned that a hostile creditor may try to petition your company to court, an administration could provide the protection needed to recover without being served payment demands or facing compulsory liquidation.
The administrator must submit their proposals to creditors within 8 weeks of the commencement of administration. After submitting their proposals and having them approved the administrator can take up to several months to carry out the administration as planned. Overall, an administration is supposed to last no longer than 1 year, but this time limit can be extended by the Court, or through the consent of the company's creditors. It can take 1-2 weeks to organise a pre pack administration.
Our licensed insolvency practitioners are experienced in all matters related to company administration. For free advice email us or call us today (0800 644 6080) and we’ll help you formulate a plan to get back on track.
Friday 29th April, 2016 Written by Keith Tully
A construction company based in County Antrim in Northern Ireland has been entered into administration after failing to overcome a variety of financial and operational challenges in recent months.Learn More…
Tuesday 26th April, 2016 Written by Keith Tully
The tailoring brand and retail group Austin Reed has been entered into administration and cast doubt over the employment of around 1,200 people.Learn More…
Friday 22nd April, 2016 Written by Keith Tully
A manufacturing business that has been operating in the Midlands for over 100 years is heading for administration after failing to turnaround an unsustainable financial position in recent weeks and months.
29th April 2016 The UK’s largest independent printing company has called in administrators after failing to overcome cash flow problems in recent weeks.
25th April 2016 Thousands of employees of the historic UK retail business British Home Stores (BHS) have been informed that the company is set to enter administration.
22nd April 2016 HM Revenue & Customs (HMRC) is being urged to make changes to guidance relating to its flat rate VAT schemes for small and medium-sized enterprises (SMEs).
21st April 2016 Having to pay staff no less than the new National Living Wage will leave many thousands of British businesses facing the prospect of financial peril.
14th April 2016 HM Revenue & Customs (HMRC) is increasingly focussing its enquiries in relation to corporation tax issues in the UK on the affairs of small and medium-sized enterprises (SMEs).
Every day we help companies just like yours turn things around against seemingly impossible odds, regardless of your situation we can help. Find your nearest office today.