When a company is insolvent and facing serious threats from Creditors it may enter into Administration. Licensed insolvency Practitioners are appointed by either the company, the Directors, or by a direct application to the Court. During this process the company is protected from Creditor’s taking any enforcement action.
What is Administration?
Administration is a process available to insolvent companies in order to provide protection from its Creditors, whilst a plan outlining how to restructure or sell its business and assets is formulated. Protection from Creditors is particularly useful and necessary in a situation whereby a company is being proactively or aggressively pursued for payment of a debt from one or more of its Creditors. A common reason for a company to enter Administration is if Creditors are threatening or have issued a Winding up Petition, or is otherwise being pursued aggressively through the Courts by Creditors. Once placed into Administration, the Administrator of a company must carry out their duties with the objective of:
Members Voluntary Liquidation is generally available to companies meeting the following requirements:
We offer all our customers a complimentary initial meeting to establish what options may be available to mitigate your situation.
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Administration is a highly useful procedure for company directors and Insolvency Practitioners that can, if required, ensure the survival of a business.
Some of the particular benefits of the process are: