Administration
Company Administrationis designed to protect companies from their creditors while a restructuring plan is developed. The type of creditor action that Company administration will stop includes:-
Bailiffs distraining on behalf of rating authorities
Landlords distraint for arrears of rent
Action by Revenue and Customs & Excise to enforce their debt
Following changes to legislation introduced in September 2003, the Company administration procedure is now streamlined which has resulted in reduced costs and better returns to creditors. An Administrator can be appointed by filing documents at court and with a few exceptions, the administration must be concluded within a year.
The purpose of the Company administration must achieve;
1) Business Rescue / Rescue of the company as a going concern or if that is not possible
2) Achieving a better realisation of the companys assets than in a Company liquidation
Only if the neither of the first two purpose are possible, can the administrator use the third purpose:-
3) Realising property in order to make a payment to the companys secured or preferential creditors
If you think that your Company can be saved via Administration, give us a call on 08000 842 844 now to discuss it further.
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