0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

RBR Video - Administration and the business rescue solution

Licensed UK Insolvency Practitioners FREE Meeting for Company Directors

We can help with serious company debts, HMRC and creditor pressure, VAT/PAYE/Tax arrears, cashflow problems and raising finance.

RBR Video - Administration

If your company is facing serious financial problems and you’re wondering whether a pre-pack administration procedure might represent a viable route forward then you could benefit from our video below. The video below explains the basics of how a pre-pack administration process works and details the key pros and cons involved. 

Video Transcription

It’s likely that you’ll have heard of the phrase ‘Administration’, particularly with the number of high-profile administrations we’ve seen in recent years on the High Street and with dozens of professional football clubs.

In this short video, we’ll explain the basics of administration, where a pre-packaged sale might come into play, and the pros and cons of administration as a business rescue solution.

Administration is essentially a powerful restructuring tool that helps struggling but potentially viable companies. If your company is in debt and being pressured by creditors, or, for example, is being threatened with legal action – maybe even a winding up petition – seeking the protection of administration could halt any action being taken against the business.

Although administration and pre-pack administration are governed by the same best practice requirements, the pre-pack process differs in one key area – the sale of the business and any assets of the company is negotiated before the appointment of administrators and completes either immediately upon – or shortly following – the appointment. This differs from the standard process where administrators commence marketing of the business after their appointment.

The key plus-points of administration are the continuation of trade by transferring any existing business to a newly set-up company, and the migration of employees to the new company as part of the sale – thus preserving jobs.

Another advantage of administration can be that less professional fees are incurred as the administrators are not responsible for trading the business.

In conclusion, the administration process is a powerful and useful tool as long as the conditions are right. It is subject to clear preferential guidelines and we, as licensed insolvency practitioners, would have to ensure that it would be the best solution to take for all parties involved.


FREE Company Director Guide - Download Today Get your FREE copy

FREE Company Director Guide - Download Today

Who we help

  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships

Contact our team

Jonathan Munnery
Andrew MacKenzie
Julie Palmer
Thomas Mckay
Keith Tully
Processing...
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Our numbers speak for themselves

55
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners