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.
Thursday 26th January, 2017 Written by Keith Tully
Around 70 jobs are understood to be at risk after a pair of Leeds-based construction businesses were entered into administration in recent days.Learn More…
Thursday 15th December, 2016 Written by Keith Tully
Rivington Biscuits has entered administration after struggling with serious financial problems and the consequences of Britain’s recent decision to abandon its EU membership.Learn More…
15th February 2017 The growth of what has become known as the gig economy is costing HMRC in the region of £75 million in lost tax revenues every week, it has been claimed.
14th February 2017 Growth in the UK economy will slow down considerably over the course of this year and next, according to the European Commission.
14th February 2017 The Co-operative Bank has been put up for sale in its entirety four years after it came perilously close to collapse before being acquired by US hedge funds.
9th February 2017 Notably strong consumer spending helped to keep the UK economy on track in recent months despite the ongoing uncertainty surrounding the country’s exit from the European Union.
6th February 2017 A majority of big business leaders around the UK feel that the Brexit vote last June and the still unfolding ramifications have had a negative impact on their operations.
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.