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ADMINISTRATION
Administration is a means of protecting the Company, and its business, while trying to sell it as a going concern.
It works if you have creditors willing to let existing management continue in control.
Time may be taken to restore the Company to profitability. Perhaps loss-making departments must be closed, or surplus staff dismissed. Work practices could be updated, or debts to banks rescheduled.
If this process succeeds, the Company can then move forward. It may have to do this through a Company Voluntary Arrangement where it agrees to make monies available to creditors over a number of years. Alternatively, a lump sum payment could be generated from refinancing of assets, or funds introduced by a third party.
If rescue proves impossible, the Administrator will sell the assets and place the Company into Creditors Voluntary Liquidation with a view to distributing the funds to creditors.
THIS IS A COMPLEX ISSUE. TO DISCUSS WHETHER THIS PROCEDURE IS RIGHT FOR YOU TELEPHONE 0800 0321 449.
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