Administration is available where it is possible to achieve one of the three statutory purposes as follows:
- Rescuing the company as a going concern;
- Achieving a better result for the company's creditors as a whole than would be likely if the company were wound up (without first being in administration);
- Realising property in order to make a distribution to one or more secured or preferential creditors.
Appointment of an Administrator can be made by the company, directors, holder of a qualifying floating charge or a creditor.
The main benefit of an Administration is that there is a moratorium period which prevents creditors and others from initiating or continuing with legal proceedings against the company thus providing the company with breathing space in order to be able to continue trading in the short term and maximise the return to creditors.
We have extensive experience dealing with a large number of administrations in a wide variety of industries, including, retail, wholesale & distribution, educational services, manufacturing, telecoms, IT, professional services and hospitality.
If you are a director of a business experiencing financial difficulties, give us a call to discuss maters confidentially without commitment.