What is administration?
A company administration is a process whereby an Insolvency Practitioner is appointed as the administrator of a company to restructure the business with the aim of either turning it into a profitable company or effecting a sale of the business to preserve value and employment.
Criteria for a company going into administration
In order to enter administration there are circumstances that a business must meet.
1. It must be insolvent, but be able to achieve a specific statutory purpose laid down by current insolvency legislation
2. It should have significant creditor pressure, and entering into administration should be a step to prevent compulsory liquidation.
Once your business enters into administration (as with CVAs) it ensures your company is protected from compulsory liquidation or other legal recourse. It places the control of your business into the hands of the licensed Insolvency Practitioner with the objective of steering your business back in the right direction. It’s important to remember that whilst you are handing the reigns over to the Insolvency Practitioner, they have to handle all the pressure and issues from creditors during this time period.
Contact The Insolvency Experts
We handle administrations for a range of businesses, and have a vast experience in restructuring businesses and returning the business back to its directors. If you feel like entering administration may be the best course of action, it’s important to seek the advice of a licensed Insolvency Practitioner.
Contact us online for more information regarding the administration process or call The Insolvency Experts directly on 0300 303 8284. For companies in administration, we have a range of advice and services – just click below.