What is Administration?

Administration is available to a company or partnership that is insolvent.

Administration is designed to deal with situations when there is an urgent need to protect the value of a business from enforcement action by unpaid creditors allowing a viable business breathing space to regroup and implement a survival strategy.

Administration is a formal insolvency process which puts an immediate ring fence around the company and its assets so that no creditor can start or continue action to recover their debts.

If your company is in debt and being pressurised by creditors who are threatening legal proceedings or have issued a winding up petition, then seeking the protection of Administration may be the best option.

Key Points

  • The objectives of Administration are to rescue a company as a going concern or achieve a better outcome for lenders and creditors than if the company was placed into liquidation
  • By maximising value in the business and assets a greater return to the lenders and creditors can be achieved
  • This is most effective when:
    • There are severe cash flow pressures, however fundamentally there is a viable ongoing business
    • A company is insolvent, and a sale of the business and assets preserves as much of its value as possible whilst retaining jobs and securing survival of trading operations

Let’s Talk

It’s important to speak to people who can help as early as possible. We have experienced teams who can help you and work with you to achieve the best outcomes for you and your business. For a no-obligatory chat, complete the form opposite, include a best time for us to call you and a Partner will be in touch.

Alternatively, book a convenient time for us to contact you