An Administration is a very powerful process where a company is insolvent and facing serious threats from creditors. The shareholders, directors or bank may appoint a licensed Insolvency Practitioner as Administrator, this places a moratorium around the company and stops all legal actions. Whilst Administration paperwork is filed at court, a court hearing is not required.

(In limited circumstances, where a petition to wind up the company has already been issued, a Court application will be necessary and it will be for the Judge to decide whether the company should go into Administration and to appoint the Administrator). This is why we advise that it is always best to seek advice on a company’s affairs at an early stage
Administrations were introduced by the Government as a rescue mechanism to promote the rescue, survival and continuation of businesses.

However, the Administration must have a purpose i.e. the company proposes a restructuring plan or it continues trading in administration with a view to selling the business and its assets.
Alternatively, a sale may be completed upon entering into administration or shortly thereafter – this is known as a pre-pack.

What is a pre-pack administration or administration pre-pack sale?

The company prepares itself to enter Administration and sell its assets to a new company or to an existing third-party company. The transaction takes place immediately upon entering into Administration or within a few days thereof. This is a very powerful, far reaching process that can protect the business. The old company is usually liquidated or dissolved afterwards.

Our experience in managing formal insolvency procedures extends over 20 years.

 

Advice you can trust

For peace of mind, why not ask our advice?
Request a free, no obligation, confidential consultation with one of our Insolvency specialists today.

What is a pre-pack administration or administration pre-pack sale?

The company prepares itself to enter Administration and sell its assets to a new company or to an existing third-party company. The transaction takes place immediately upon entering into Administration or within a few days thereof. This is a very powerful, far reaching process that can protect the business. The old company is usually liquidated or dissolved afterwards.

Our experience in managing formal insolvency procedures extends over 20 years.

 

Advice you can trust

For peace of mind, why not ask our advice?
Request a free, no obligation, confidential consultation with one of our Insolvency specialists today.