Administration is one of the options open to insolvent businesses. It allows the reorganisation of an insolvent company, whilst protecting it from its creditors. As Administrators, we can hold your company together while plans are formulated to rescue the business, maximise asset realisations, or put forward alternative options.
Administration can be initiated by directors and used very effectively as a restructuring mechanism. Where the company has a viable future it provides a breathing space in which proposals can be put to the creditors. Streamlined under the Enterprise Act 2002, we can achieve an Administration quickly and efficiently. Your company can subsequently exit from Administration and be returned to your control.
Administration buys a company time to address problems within the business, perhaps by attracting finance or private investors, or in some cases cutting back non-performing areas of the business. If the problems are resolved the company can be returned to the control of the directors.
In some cases, the Administrators may have to look to sell part or all of the business or assets. Sometimes it is necessary to arrange a “seamless” sale, particularly where protracted advertising would damage the goodwill and value as a going concern and even threaten the safety of existing employee jobs. This is often referred to as a “Pre-Pack Administration” and it is not uncommon for the purchasing company to be owned and managed by the original owners / managers of the “old” company. If you wonder if this is appropriate for your company, click on contact or phone 01302 572 701 for free advice.