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 2nd December, 2016 Written by Keith Tully
Administration is a formal path into insolvency designed to help companies in financial difficulty. Here we explain 'trading administration' in more detail.Learn More…
Thursday 27th October, 2016 Written by Keith Tully
The construction services group Elliott Thomas is facing the prospect of having to place key elements of its operations into administration amid an ongoing financial crisis.Learn More…
Tuesday 25th October, 2016 Written by Keith Tully
A supplier of steel fabrication services based in Teesside in the North East of England has been entered into administration after being beset by financial difficulties over the course of the past 12 months.Learn More…
1st December 2016 One of the largest taxi firms operating in the city of York has been entered into administration after succumbing to persistent financial pressures and a cash flow crisis in recent weeks.
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21st November 2016 A number of very well-known figures are understood to have been among hundreds of people recently ordered by HM Revenue & Customs (HMRC) to make large-scale repayments in relation to a tax avoidance.
14th November 2016 The rugby league club Bradford Bulls has been entered into administration after failing to reach an agreement with HM Revenue & Customs (HMRC) in relation to a £350,000 outstanding tax bill.
28th October 2016 An employment tribunal in London has ruled that Uber drivers are effectively employed by the American car-hailing company and should not be considered self-employed contractors working for themselves.
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.