What is an Administration?
An Administration is an insolvency procedure which is often used to obtain a breathing space from creditor action, such as bailiffs attending at the company premises to seize its assets, finance companies looking to repossess assets, preventing a Winding Up Petition being issued or a Winding Up Orders being made.
An Administration gives the Company and its directors, with the assistance of a Licensed Insolvency Practitioner, time to work out what is the best option and formulate a strategy to achieve the best result possible for both the Company and the creditors.
This could be trading on the business to find a buyer, or to complete a contract, a pre-packaged sale of the business to a third party or a management buy out, a Company Voluntary Arrangement or even a Liquidation.
In terms of selling a business an Administration offers many advantages to the Company, its creditors and any potential buyer. The main one being that it can provide a seamless transfer of the business from the Company to the buyer, thus maximising the value of the sale, while at the same time minimising the disruption to the business and damage to its goodwill.
More information can be found on our What is an Administration webpage.
Alternatively, if you would like a free face to face, Zoom or telephone meeting, with a Licensed Insolvency Practitioner, please ring 01326 340 579 or 01305 458 383, to arrange a mutually convenient time and date to discuss the options open to you and your Company.
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