Administration is a formal procedure designed for struggling companies.
Process: How Administration works,
step by step
Process: How Administration works, step by step
If you’re really not sure if administration is an option for you,
we’ll help you decide, step by step.
Set up a free, no obligation consultation, meet or chat remotely with a qualified insolvency practitioner. We’ll have a frank conversation about whether administration is the right option for you.
Practical guidance on how to rescue the company and get a positive result for creditors.
As administrator, we’ll put an administration order in place to protect the business from creditors who might threaten to wind up the company.
If required, engage with directors and bankers to secure a ‘pre-pack’ administration of the business and assets.
Guidance on best practice to set up a new business that will flourish on a sustained, phased plan.
Administration is a formal insolvency process which is usually exercised to gain breathing space from creditor action, such as the seizure of company assets, bailiffs entering the premises, or a winding-up petition being issued. Administration gives a company time to assess its best options and create a strategy so that the best results can be achieved. The options of administration could be either a pre-packaged sale of the company, entering the company into a company voluntary arrangement or liquidating the company. This means that in terms of selling a company, administration offers several advantages to both the company and its buyer, such as a seamless transfer of the company to its new owners, not only maximising the value of the sale but also minimising the disruption to company business.
An Insolvency Practitioner can be appointed as administrator of the company and should have the following objectives in mind:
- To rescue the company as a going concern
- To achieve a better result for creditors as a whole than would be likely if the company was wound up
- To realise property in order to make a distribution to secured or preferential creditors
An administrator can be appointed by:
- The company
- Its directors
- One or more creditors
- A liquidator (if already in liquidation)
- A secured creditor
There are several ways that a company can be placed into administration, these are dependent on the company’s circumstances. If the company is not subject to a winding-up petition, then a company is able to be placed into administration simply by filing documents to the courts. This can be done without a hearing being required meaning that placing a company into administration is a relatively quick process.