Administration provides a period of breathing space whilst the business is restructured and the ultimate aim is to ensure that the company is rescued from the brink of failure. Only Licensed Insolvency Practitioners can act as Administrators.

Should it not be possible to rescue the company then normally the aim will be to preserve as much of the business as possible - usually through a trade sale or sale to the management team. This provides the best return to the creditors of the business (through a higher than auction price being realised for the assets), preserves jobs and presents a new start to the business (the debts are not normally transferred over to the purchaser).

The main advantages of Administration are:

• It provides a Moratorium preventing creditors from enforcing their rights - e.g. repossession of goods, sending bailiffs, etc;
• A company can often be placed into Administration and action taken to preserve the business very quickly (much quicker than liquidation);
• An Insolvency Practitioner can often allow the business to continue to trade during the period of restructuring (rare in liquidations);
• Can be used to facilitate the sale of a business as a going concern free from its debt and obligations; and
• Normally results in a better result for creditors than other procedures such as liquidation.

Our service

Once we have gathered the facts, we can advise stakeholders on the appropriate course of action.

Should Administration be considered to be the best solution then we will liaise with the existing management team, normally prior to appointment, to determine the appropriate strategy.

Once this has been established it may be necessary to obtain consent from various parties including parties that hold a charge over the assets of the company (e.g. the bank). We will discuss directly with this party the situation, the proposed course of action and the impact this will have on them. Normally consent is forthcoming and the company can be placed into administration relatively quickly.

As soon as the appointment takes effect we will attend the company's site and implement the proposed strategy.

We aim to take as much of the pain and stress out of the administration process to ensure that the impact upon employees, suppliers, funders and customers is minimised. We understand the impact of the Administration on the stakeholders and their importance in its success. As such we invest time early in the process to address concerns and provide honest, factual and open information to such parties.

Throughout the process we have an open dialogue with the stakeholders and aim to act fairly to the stakeholders of the business. Many stakeholders also have access to up to date information on the progress of the administration through our Website.

More information

If you wish to discuss the financial situation of a business please contact us via our webform or call us on 0870 495 7854.