At Invocas Financial Business Recovery & Insolvency, we have handled a number of administrations in a variety of sectors and believe this is an extremely valuable tool for protecting viable businesses that are experiencing financial difficulties.
- An Administration Order is usually sought by the directors of a company that is, or is likely to become, insolvent.
- Under the Administration Order, the Court appoints an Administrator who takes over the running of the company while plans are formulated to rescue the business, maximise realisations or put forward alternative procedures such as a Company Voluntary Arrangement.
- Once the petition and order are in place, the company is protected from its creditors who cannot take legal proceedings or otherwise disturb the business without the permission of the Court. This includes preventing landlords from repossessing their property and hire purchase creditors from repossessing their goods.
- However, an order will only be granted if the Court is satisfied that the outcome for the creditors of an Administration will be better than if the company was put into liquidation.
If you’d like to talk us about administration or any of our corporate debt solutions, please get in touch.
