Administration provides immediate protection from recovery action being taken by Company creditors such as your suppliers or HMRC. This buys you time to determine the best strategy for you and your business.
Whilst it can be a tough decision to choose to place your Company into Administration, the immediate protection provided often makes it by far the best way to save your business.
We will support you throughout the Administration process to ensure that you understand your options and their impact on your business.
Appointing an Administrator
In most cases, the Administration process is started by the Directors filing a Notice of Intention to Appoint an Administrator. This form is a simple document that we will arrange to complete and file at Court for you. As soon as the notice of intention has been filed your Company is protected from all ongoing and potential legal and recovery action for a period of 10 business days.
You are only required to disclose the Notice of Intention to the Company’s charge holders (who would usually be your factoring company or a bank you have a loan with) together with any creditors who are threatening legal action. Because the Notice of Intention is not in the public domain your suppliers, customers and staff will not need to be told at this stage that you have started the Administration process. This provides us the opportunity to work with you to decide on how best to proceed to save your business.
Peter James Anderson
During the 10 day period whilst your Limited Company is protected we will work with you understand your objectives.
How Administration Works
During the 10 day period whilst your Limited Company is protected we will work with you understand your objectives for the business whilst also establishing your Company’s financial position and the value of its assets. Based on this we will agree with you whether the Company should continue to trade, go into Administration (which may be as a Pre Pack) or take a different insolvency option like CVA or Liquidation.
When we have been appointed as Administrators we will seek to realise the Company’s assets. When doing this, we are required to obtain the best price we can for the Company’s assets as a whole.
Almost invariably the assets will be of most value to you as the Company’s existing Directors as you know the business and have already worked hard to build it to its current form. Because of this, you will be in a position to immediately agree a buy back of the business and assets free of the Company’s historic debts. Depending on the nature of the assets, the amount of money involved and the security available we can usually agree sensible payment terms for the purchase.
When you get in touch with us, you will speak directly to a licensed Insolvency Practitioner from the outset. We will take the time to understand your Company’s financial position, what your future intentions are for the business and ultimately what outcome you are hoping for.
If you feel your Company needs the immediate protection provided by Administration we are able to help so please call us to discuss your options in more detail.