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.
Wednesday 27th July, 2016 Written by Keith Tully
The Kent-based building company Cardy Construction is apparently poised to enter administration after being hit by a notable downturn in activity within its industry in recent months.Learn More…
Monday 18th July, 2016 Written by Keith Tully
The Lowcost Travelgroup has been entered into administration and ceased trading, with 120 people losing their jobs as a result.Learn More…
Thursday 14th July, 2016 Written by Keith Tully
Dozens of bus routes have been left without services and over 300 people have lost their jobs as a bus company based in Wrexham in north Wales has entered administration.Learn More…
22nd July 2016 Data relating to economic output and activity during July suggests that optimism and ordering levels among British businesses have both taken a steep downward turn in recent weeks.
21st July 2016 Administrators have been called in to manage the affairs of the Dunne Group, a Scotland-based construction company with hundreds of employees in the UK.
13th July 2016 Sentiment among big businesses with operations in the UK has plummeted to unprecedented lows in the wake of the UK-wide referendum on Britain’s membership of the EU.
12th July 2016 The Food and Drink Federation (FDF) is calling on the government to scrap its plans to introduce a so-called sugar tax in the UK.
5th July 2016 Sainsbury’s has said it will close the 16 British Netto stores it has been operating on the basis of a joint venture with a Danish supermarket group called Dansk Supermarked.
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.